Republicans Say New Amendment to HCR Will Raise Medicare Drug Premiums

By Jeralyn, Section Legislation
Posted on Fri Oct 02, 2009 at 06:19:45 PM EST
Tags: health care legislation (all tags)

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Republican Senator Charles Grassley today said a Democratic amendment to the health care reform bill that passed early this morning will raise prescription Medicare drug premiums.

How so?

As the prescription benefit is designed now, taxpayers cover three-fourths of the cost of the benefit, while Medicare recipients pay the remaining 25 percent.

The amendment would allow the new Medicare commission to recommend "reductions in federal premium subsidies" to the private insurance plans that deliver the prescription drug benefit. Grassley's office said the "premium subsidies" are taxpayers' share of the cost of the prescription plan. If those are reduced, the plans will make up the difference by raising premiums for seniors.

[More...]

As to why:

Grassley said the Democratic amendment was geared to compensate for a deal that would exempt hospitals from the commission's cost cutting scalpel.

The hospitals have already agreed to forego $155 billion in Medicare and Medicaid payments over the next ten years to help pay for the health care overhaul.

Is it true? What is the Democrats' response?

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Republicans Say New Amendment to HCR Will Raise Medicare Drug Premiums | 9 comments (9 topical)

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Who to believe? (5.00 / 1) (#2)
by caseyOR on Fri Oct 02, 2009 at 07:12:06 PM EST

I don't know anymore. I tend to not believe any politician speaking about health insurance reform. It's all about the angles to them. Oh, and the campaign money. Almost never about what is good for the American people.

If the GOP is so gosh-darned worried (none / 0) (#1)
by Anne on Fri Oct 02, 2009 at 07:07:33 PM EST

about Medicare prescription drug premiums, perhaps someone, oh, like Grassley, ought to offer an amendment that would allow Medicare to negotiate drug prices - wonder what effect that would have on them?

As for whether it's true, I don't know; what I do know is that I think the GOP strategy is entitled, "Dance, Democrats, Dance!" and I have no doubt the Dems will comply.

: He could have also voted "yea" (none / 0) (#3)
by MO Blue on Fri Oct 02, 2009 at 07:18:52 PM EST

to Sen. Nelson's amendment to eliminate the drug industry overcharge on dual eligible Medicare/Medicaid people and close the Medicare donut hole for prescription drugs. He chose to vote "NO" along with all other Republicans and 3 Democrats.
That being said, I do not like setting up a new Medicare commission with the power to recommend "reductions in federal premium subsidies" to the private insurance plans that deliver the prescription drug benefit. If I don't like what members of Congress do to Medicare, I at least have the option to try and vote them out of office. No such option available on commission members.

: well, um......................... (none / 0) (#6)
by cpinva on Sat Oct 03, 2009 at 05:24:18 AM EST

If the GOP is so gosh-darned worried
about Medicare prescription drug premiums, perhaps someone, oh, like Grassley, ought to offer an amendment that would allow Medicare to negotiate drug prices - wonder what effect that would have on them?
because they aren't that concerned? ok, just a guess mind you.
maybe sen. grassley's grasp of basic econ 101 (see: economies of scale) just isn't very good, so he doesn't understand that whole "when you buy in huge quantities, the per unit cost should decrease." thing.
as you correctly note anne, that would probably negate any increase in premiums, all by itself.

blackmail and extortion (none / 0) (#4)
by diogenes on Fri Oct 02, 2009 at 07:38:55 PM EST

The hospitals agreed to cuts so that they wouldn't get cut worse. The AMA supported the plan because if Congress does not act then Medicare fees to doctors automatically drop by 20% on January 1, 2010.

Isn't the $4 prescription available anywhere else? (none / 0) (#5)
by Inspector Gadget on Fri Oct 02, 2009 at 08:25:34 PM EST

We have a list of some 300 generic drugs that can be purchased for $4 a month, or $10 for three months.

: no doubt it is IG. (none / 0) (#7)
by cpinva on Sat Oct 03, 2009 at 05:27:34 AM EST

Isn't the $4 prescription available anywhere else?
however, since those are private sector programs, subject to change or abolishment at the whim of the companies offering them, i wouldn't count on it for the rest of my natural life. also, it only covers generics, not all drugs.

basically, (none / 0) (#8)
by cpinva on Sat Oct 03, 2009 at 05:29:14 AM EST

grassley and his ilk are either total idiots, or just low-grade prevaricators, you make the call.

I dunno if it's true, but.... (none / 0) (#9)
by Lora on Sat Oct 03, 2009 at 06:34:13 PM EST

I have no faith in any health care reform under the current congress/administration.