by John M. Curtis
(310) 204-8700

Copyright July 29, 2002
All Rights Reserved.

edicare prescription drug coverage suffered a fatal arrhythmia as Democrats and Republicans couldn't see eye-to-eye at the Senate bargaining table. Skyrocketing prescription costs were trumped by soaring budget deficits, now threatening the economy and pushing new entitlement programs out of reach. Heading into November, neither party can claim victory, leaving financially strapped seniors holding the bag. Both Bush and Gore battled over Medicare prescription drug coverage during the campaign, when the government ran a $115 billion surplus. Times have changed since the 2000 market meltdown, shrinking government coffers by a whopping $180 billion. "This is a vote about national character and priorities," said Sen. Edward M. Kennedy (D-Mass.), urging colleagues to ignore current fiscal realities for the sake of struggling seniors. Unable to cobble together a compromise, seniors won't enjoy Medicare prescription drug benefits anytime soon.

      Since Sept. 11, all bets are off when it comes to budget-busting entitlements. Pentagon spending—deservedly so—has taken the lion's share of new expenditures. With government receipts down and Iraq on the backburner, launching the most costly government program since Medicare in 1965 doesn't seem feasible. "Unfortunately, I think it is not particularly likely," said Sen. Robert Torricelli (D-N.J.), speculating about a compromise before the traditional congressional summer recess. Today's priorities place a Medicare prescription drug benefit low on the food chain when compared to corporate reform and homeland security. While the elderly would like extra Medicare benefits, most comprehend national priorities, including fighting a war on terrorism and managing exploding budget deficits. Tax cuts and new Medicare benefits were a no-brainer during the Clinton years when whopping surpluses ruled the day. Since the economy headed south, it's unwise to jump into massive new debt.

      Jockeying for position, both parties must come to grips with current priorities, including whether the costs involved in a "regime change" in Iraq fit national security. Recent reports about Iraq seeking high-tech stainless steel tubing—a key component in nuclear reactors—raises the stakes and makes the "regime change" scenario less avoidable. Since booting out U.N. weapons inspectors in 1998, no one knows for sure what's going on in Iraq. But since 9-11, the government can't afford to sit idly by while Saddam Hussein develops an A-bomb. Prescription drug coverage for struggling seniors can't eclipse national security. Destitute seniors already receive prescription coverage through Medicaid, the federal health act for the indigent. Sure, seniors on fixed incomes are punished—as are all citizens—by rising drug costs. But the government already pays for prescription coverage through Medicaid. Rather than offering budget-busting new Medicare benefits, reducing drug costs should be a top priority.

      Many seniors already cross the Canadian and Mexican borders to buy drugs at dramatically reduced prices. Wouldn't it make a lot more sense for the government to regulate prescription costs—just as they do milk prices—for seniors? After all, the intent of a new Medicare prescription drug benefit is to help defray costs of growing old. Current legislation before Congress attempts to accelerate patent expirations on brand-name drugs, making less expensive generic drugs more available. While a good thought, playing with patents discourages research and development for ambitious drug companies seeking new cures. Democrat and Republican Medicare prescriptive drug plans differ on which groups qualify for coverage. Republicans want to confine benefits to seniors with financial need. Like universal health care, Democrats want to extend coverage to all seniors, regardless of circumstances. But it's no time to debate theoretical health care rights when there are real consequences to running massive deficits.

      Kennedy's Medicare prescription drug plan would cost the treasury an estimated $600 billion over seven years—a prohibitive budget-buster. Republicans, on the other hand, want to subsidize private insurers to offer prescription coverage—a plan with an estimated cost of $370 billion over 10 years. Both parties are "engaged in a shameless bidding war to court elderly voters," said John C. Goodman, president of the National Center for Policy Analysis, a nonpartisan Washington think tank, concerned about federal deficits threatening economic recovery. Neither side currently offers a viable alternative. Republicans don't take into account that many current HMO plans already offer prescription drug benefits, especially senior plans. With the Democrat's plan, there's no logic to giving prescription drugs at the expense of the economy. Both parties must think outside the box before leaping into another costly boondoggle.

      All citizens—including seniors—need relief from runaway prescription prices. It's shameful that the same drugs are available in Canada and Mexico for a fraction of the price. Offering seniors healthy discounts by federally regulating prescription costs wouldn't savage the economy and add to exploding deficits. Medicaid programs already offer prescriptions drug coverage to all individuals meeting stringent federal guidelines. Legislators can change eligibility requirements to include seniors who would otherwise not qualify, expanding drug coverage to the fixed income elderly. Legislating limited federal price controls on certain lifesaving classes of medications would also give financially strapped seniors the kind of relief intended by Medicare prescription drug coverage. Busting the budget harms all citizens, including seniors seeking relief from overpriced prescription drugs. Congress must put politics aside, think outside the box and craft a solution that doesn't harm the economy.

About the Author

John M. Curtis writes politically neutral commentary analyzing spin in the news. He's a consultant and expert in strategic communication. He's the author of Dodging The Bullet and Operation Chariasma.

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