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| Clinton's New 'Slamdunk'
by John M. Curtis Copyright July 1, 1999
With impeachment a faded memory and with Kosovo all but wrapped-up, the savvy chief executive dramatically upped his batting average by proposing a new Medicare drug benefit. Long overdue by anyone’s measure, offering a prescription drug benefit raises the term 'political correctness' to new heights. How could anyone — with aspirations of hanging on to elected office — possibly oppose this? Costly as it is, with Wall Street booming, unemployment at record lows, tax rates over-the-top and the government cashing-in, who, but some fool, could attack this proposal? After all, under current tax rates, the administration is now projecting a 10 year budget surplus of more than one trillion dollars. A staggering sum to be sure. What better use of the most massive tax windfall in our nation’s history? Sounds too good to be true — doesn’t it? Guess what? It probably is. Though Mr. Greenspan has done a masterful job of macromanaging the economy, he’s not entirely in control of all economic cycles. When the next recession eventually hits — and history has taught us it’s just a matter of time — what’s going to happen to the vaunted budget surplus? With government spending spiraling out of control, surpluses evaporate quickly and shortfalls pile up just as fast. What’s supposed to happen then? Trash the ambitious new program? Pull the rug out from underneath all the seniors now hopelessly dependent on their prescription benefits? Raise the Medicare tax? Step up activity of the IRS? Hike income taxes? Punt, bunt or faint? Shouldn’t there be some coherent contingency plan in place before launching into another risky but well-intentioned government program? It’s easy to agree with the principle of providing prescription benefits to seniors and the disabled but it’s difficult to find durable sources of revenue to underwrite such programs. Just as the administration miscalculated the gravity of the refugee crisis in Kosovo, so too might they grossly underestimate the massive expense involved in subsidizing a Medicare prescription benefit. Where’s all the panic today about Medicare’s past fiscal insolvency? Without too much amnesia, Medicare’s Part A hospital fund was due to go broke by 2006. Now that there’s an unexpected budget surplus, the administration is looking for creative ways to spend it. There’s only one small problem. Where’s the money coming from? Lest we forget, it’s coming from the pockets of the people. And with the Federal, state and local governments taking 46 cents out of every dollar earned, the Federal government already punishes its citizens enough with disproportionately high taxes. Rather than admitting that today’s tax rates are excessive, the White House has decided that it knows best how to spend tax payers’ money. Why not bring tax rates down to tolerable levels before making already shakey programs even more costly? Raking in unprecedented tax revenues, it makes more sense for the Clinton administration to offer tax payers comprehensive tax relief before launching into another exorbitant plan. After the government lowers taxes, adjusts to shrinking revenues and reduces its euphoria it can better estimate what’s left over for additional programs — like the administration’s ambitious Medicare drug benefit plan. While there’s nothing wrong with president Clinton attoning for the Monica Lewinsky disgrace and salvaging his true 'legacy,' it’s also wise to consider the long-term repercussions of committing to such a costly program. Euphoria aside, let’s also consider the actual need for prescription drug benefits. "Many of the drugs we now routinely use to treat heart disease, cancer, arthritis did not exist in 1965," said president Clinton, underscoring the apparent urgency of the problem at the end of the millennium. That’s true. There are many more medications available today. But it’s also true that other drugs — used to treat these same conditions — existed back when the Medicare program first began in 1965. The need was just as strong then, if not stronger, because Med-gap insurance didn’t exist — nor did Medicare HMOs or the expansive Federal Medicaid program, all of which supply prescription drug benefits. Of the 40 million Medicare enrollees today, about 8 million already have Med-gap insurance covering drug benefits. Another 6 million have joined senior HMO plans which routinely cover most prescription costs. Add to the mix another 10 million low-income and disabled Medicare beneficiaries whose prescription benefits are already covered by Medicaid. That still leaves a hefty 16 million Medicare subscribers exposed, with varying financial needs, without prescription benefits. Certainly more sober analysis is needed before leaping into another costly boondoogle. No matter how euphoric the White House feels about current budget surpluses, spending money which hasn’t been collected is a risky proposition. The government — like private citizens — shouldn’t be spending money based on optimistic projections about future income. If there’s so much cash to go around now, it’s proof that significant tax relief should be the administration’s top priority. While many seniors need additional benefits, they don’t need another Trojan Horse before the cart. About the Author John M. Curtis is director of a West Los Angeles think tank specializing in human behavior, health care and political research and media consultation. He’s a seminar trainer, columnist and author of Dodging The Bullet and Operation Charisma. |
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mbushing congressional Republicans and presidential front-runner George W. Bush’s new 'compassionate conservatism,' president Clinton once again showed his brilliant instincts for the American pulse. What could possibly be more 'heroic' than offering seniors and the disabled, prescription drug benefits? Think about it. What can the Republicans do now to attract Democrat crossovers with this kind of promise? Against prevailing wisdom, voters aren’t moved by philosophical discussions. Offer them a steak in every frying pan and that’s another story. President Clinton has made seniors and the disabled an offer they can’t refuse. But what about the rest of us?|
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