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Senate Rejects Prescription Drug Benefit for Medicare

Aired July 31, 2002 - 13:46   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

KYRA PHILLIPS, CNN ANCHOR: Let the finger pointing begin. The Senate today rejected a prescription drug benefit for Medicare. It was the fourth failed attempt, and likely the last chance before senators head home to their districts for the August recess.
Joining us now with more, CNN congressional correspondent Kate Snow.

Kate, we heard from Ari Fleischer during the White House briefing, extremely disappointed.

KATE SNOW, CNN CORRESPONDENT: Yeah, well, that's what you're going to hear both Republicans and Democrats say, Kyra, I think from here on out, particularly as they head back to their districts. Both sides keenly aware that this is going to look or could be perceived as a failure. What the Democrats tried to do today was sort of a last-ditch effort.

Their bill that they proposed would have provided full coverage for lower-income seniors. For example, a single making less than about $17,000 a year would only have to pay $2 for generic brand, $5 for brand name prescription drug. The other thing they wanted was discounts of up to 30 percent for all drugs if all seniors enrolled in this plan. This plan would be available through Medicare. And thirdly, full coverage for anyone enrolled after a $3,300 out-of- pocket expense. Once they reached that limit, they would then not have to pay any more than $10 per prescription.

This was criticized by a lot of Republicans for many different reasons, among them, for not really going far enough at covering those people in between poverty and the people who are at their dire need level.

I'm joined now by Senator Bob Graham, who sponsored the bill that we just talked about, the one that didn't pass today, failed in the Senate, and probably the last attempt, at least this go-around. What do you say to senior out there, who say, why can't you just get this done?

SEN. BOB GRAHAM (D), FLORIDA: Well, I say to seniors that I'm very disappointed that there are hundreds of thousands, millions of people who are waiting for some help with their prescription drugs. We tried a week ago with a fully comprehensive plan, and we got the most votes of any of the plans, but that did not get the 60 votes necessary. So we were told, you've got to reduce it, bring it down, under $400 billion. We did that. We targeted at all seniors with a very significant discount and a federal supplement on top of that, but we put most of our emphasis on the neediest. Those who had the highest prescription drug cost, those who had the lowest income.

SNOW: But all of this was done, as I mentioned, in the context of Medicare. Republicans say that is not the way to go. Better to use the private system, better to use private insurance companies, to try to deliver, and they say that's why this bogged down, because philosophically, you are not on the same page.

GRAHAM: You are absolutely right, because a lot of the dollar differences have been resolved. We both have plans of about $375 to $400 billion. They are both are in excess of the $300 billion which had been provide in the budget. That's why we have to have a special 60-vote to waive that budget limitation. But the big issue is going to be whether this is delivered through Medicare, as are your hospital and doctor's benefits, or is it going to be privatized.

PHILLIPS: Let me raise one last point that Republicans are making, and that's politics. Let's take a look at what Senator Rick Santorum said about the Democrats did today.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This was designed to fail, so they would continue to have an issue for the November election. They know, the poll is very clear, that Democrats are more trusted on Medicare than Republicans. And so when they go to election time, they can point the finger at Republicans they see say, see, these Republicans this, don't care about it you. And it's just purely raw politics.

(END VIDEO CLIP)

SNOW: Purely raw politics.

GRAHAM: I couldn't disagree more. AARP and all of the major senior organizations, whose whole reason for being is to represent seniors all very strongly, supported our proposal. They thought it was real benefit to elderly. They are not into raw politics.

SNOW: Both sides say they want to go back at this again, they want to take another shot at this. When they get back from the August recess, but it's unclear, Kyra, whether this is really going anywhere, this year at least -- Kyra.

PHILLIPS: Kate Snow, thank you so much.

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