House Democrats resist privatizing Medicare
Jordan Lo Regio staff writer
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On Tuesday, Nov. 4, House Democrats emphatically rejected the Republican demand to open Medicare, which has always been a government program, to competition.
This has all but halted negotiations in which Republicans are planning to compromise the U.S. Medicare system.
These compromises to the system include the privatization of Medicare, the raising of Medicare premiums and the cutting of benefits within the program.
In commenting on the situation, Senate Democratic Leader Tom Daschle said, "This is not a hopeful sign and leaves me very troubled about just what, if anything, can be done on Medicare before the end of the year."
Republicans seem much more optimistic, with Senate Majority Leader Bill Frist saying that the legislation will be ready for a vote by the original target date of Nov. 21.
In June, the House and Senate passed twin bills with twin objectives. Both called for creation of new prescription drug benefits.
Simultaneously, they also called for a remodeling of Medicare while private companies would be allowed to offer plans to seniors who wish to seek healthcare elsewhere.
In spite of the intensifying negotiations of late, the issues left unresolved far outweigh the issues resolved.
The most controversial of these is that the GOP is calling for competition between Medicare and the private plans that would become available to seniors under the Republican plan.
The House passed legislation stating that in 2010, Medicare rates will be based in part on the rates of the privately run healthcare companies. Republicans oppose this, saying that it will impede the growth of Medicare.
Although the Democrats also oppose this aspect of the bill, they argue that it will drive Medicare costs up.
Another concern among Democrats is that the evolution of the government prescription drug benefit may cause private corporations to cut back in the health care coverage that they currently provide for their retirees.
These issues clearly need to be addressed in the new Medicare bill; however, there are several additional Senate-House disagreements that negotiators have yet to resolve.
These issues include the ease with which generic, low-cost drugs can reach the market, a call to legalize the importation of brand-name drugs from Canada and elsewhere and a Republican proposal to limit Medicare spending if costs reach unexpectedly high levels.
Despite much pressure to resolve the differences quickly, Democrats have kept up the criticism.
They say that the Republican plan would "bribe" people into joining private health plans, increase the premiums of the traditional Medicare plans and jeopardize the health care of millions.
"We are on the verge of the greatest bait-and-switch scheme the Republic has ever seen," said Sen. Jack Reed (D-R.I.).
The "bait" is the promise of new drug benefits, he said, but then Republicans would privatize Medicare and cap spending.
Labor groups across the nation have also joined the criticism. JoAnn C. Volk, a lobbyist for the A.F.L.-C.I.O., said, "The proposed structural changes in Medicare are too high a price to pay for the drug benefit."
In regards to the Democratic criticism, Tom DeLay, (R-Texas) was quoted as saying that he knew the Republicans were on the right track when Democrats "began to wail."
DeLay furthered his apparent ignorance with gross generalizations when he said, "The Amer-ican people are coming to realize that the Democrats are just destructive and obstructive, and the Republicans are getting things done and they are rewarding us by electing our people."