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American Morning

Medicare Overhaul

Aired November 25, 2003 - 07:04   ET

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

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


BILL HEMMER, CNN ANCHOR: That hotly-contested Medicare bill is expected to be approved by the Senate when it votes about two hours from now at 9:00 a.m. Eastern Time. The change is expected to cost about 400 billion over the next 10 years.
The addition of the prescription drug coverage is at the centerpiece of this bill. That starts in 2006. It will cost about $35 a month and cover 75 percent of expenses, up to $2,225.

It will also be a major political victory for the White House and the Republican-controlled Congress.

Two live reports today. From the White House, Suzanne Malveaux is on that beat today, and Kathleen Koch is at the Capitol. Let's start with Kathleen there.

Good morning.

KATHLEEN KOCH, CNN CORRESPONDENT: Good morning, Bill.

This has been a very long and contentious debate, senators since early Saturday morning wrestling over this measure that supporters insist provides long promised prescription drug coverage to 40 million older and disabled Americans.

An interesting and unlikely alliance, though, formed during the debate between Democrats, who say that this measure helps not seniors but private insurance companies and drug companies, and with fiscally- conservative Republicans, who insist that this measure is a budget buster that will mean higher taxes for future generations.

Also split over the measure: older Americans, many of them protesting outside AARP offices, disputing that organization's insistence that this bill is the best they can get.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It privatizes Medicare. It says, in effect, in 2010 seniors and disabled people will get a voucher instead of our traditional guaranteed Medicare plan.

DEBORAH BANDA, STATE DIRECTOR, AARP, MASSACHUSETTS: Though it's not a perfect piece of legislation, it offers much-needed help to the seniors who need it the most right now -- namely, low-income seniors and seniors with huge drug bills.

(END VIDEO CLIP) KOCH: The Senate is scheduled to vote at 9:15 this morning on the bill. Opponents admit that they do not have the votes to beat the measure, but they insist they will keep fighting it -- fighting to change it and make it. And they say they will indeed make it an election year issue -- Bill.

HEMMER: Kathleen, thanks.

You talk about politics. Suzanne is covering that from the White House now.

Good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Bill.

This is really considered to be a huge political win for the White House; first, because it's never been done before -- a Republican president delivering on the largest expansion of Medicare in two generations. It targets a critical voting block, the elderly, as well as benefiting big business.

Secondly, it takes away an issue that Democrats traditionally control -- that is of Medicare reform, much like President Clinton did of welfare reform.

And third, it really clears the way for the president to focus other priorities. Namely, security inside of his country -- polls are showing that the president is strong in that area -- and secondly, the state of the economy, which seems to be on the upswing.

President Bush just yesterday making his case.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I want to commend the Senate for moving the modernization bill forward. I look forward to them to completing their work and getting a bill to my desk that I can sign. Modernizing Medicare will make the system better and will enable us to say to millions of seniors, we've kept our promise to America's seniors.

(END VIDEO CLIP)

MALVEAUX: Potential political backlash, of course. Democrats vehemently oppose this, but also conservative Republicans. They take a look at the price tag, and they say $400 billion, way too expensive for the government, and they just can't afford this. But the political calculus here is that this will resonate with voters -- this drug prescription as well as Medicare reform now as opposed to what this is going to cost baby boomers later -- Bill.

HEMMER: The first significant change of that program in 38 years going back to 1965. Suzanne, thanks.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.






Aired November 25, 2003 - 07:04   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: That hotly-contested Medicare bill is expected to be approved by the Senate when it votes about two hours from now at 9:00 a.m. Eastern Time. The change is expected to cost about 400 billion over the next 10 years.
The addition of the prescription drug coverage is at the centerpiece of this bill. That starts in 2006. It will cost about $35 a month and cover 75 percent of expenses, up to $2,225.

It will also be a major political victory for the White House and the Republican-controlled Congress.

Two live reports today. From the White House, Suzanne Malveaux is on that beat today, and Kathleen Koch is at the Capitol. Let's start with Kathleen there.

Good morning.

KATHLEEN KOCH, CNN CORRESPONDENT: Good morning, Bill.

This has been a very long and contentious debate, senators since early Saturday morning wrestling over this measure that supporters insist provides long promised prescription drug coverage to 40 million older and disabled Americans.

An interesting and unlikely alliance, though, formed during the debate between Democrats, who say that this measure helps not seniors but private insurance companies and drug companies, and with fiscally- conservative Republicans, who insist that this measure is a budget buster that will mean higher taxes for future generations.

Also split over the measure: older Americans, many of them protesting outside AARP offices, disputing that organization's insistence that this bill is the best they can get.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It privatizes Medicare. It says, in effect, in 2010 seniors and disabled people will get a voucher instead of our traditional guaranteed Medicare plan.

DEBORAH BANDA, STATE DIRECTOR, AARP, MASSACHUSETTS: Though it's not a perfect piece of legislation, it offers much-needed help to the seniors who need it the most right now -- namely, low-income seniors and seniors with huge drug bills.

(END VIDEO CLIP) KOCH: The Senate is scheduled to vote at 9:15 this morning on the bill. Opponents admit that they do not have the votes to beat the measure, but they insist they will keep fighting it -- fighting to change it and make it. And they say they will indeed make it an election year issue -- Bill.

HEMMER: Kathleen, thanks.

You talk about politics. Suzanne is covering that from the White House now.

Good morning.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Bill.

This is really considered to be a huge political win for the White House; first, because it's never been done before -- a Republican president delivering on the largest expansion of Medicare in two generations. It targets a critical voting block, the elderly, as well as benefiting big business.

Secondly, it takes away an issue that Democrats traditionally control -- that is of Medicare reform, much like President Clinton did of welfare reform.

And third, it really clears the way for the president to focus other priorities. Namely, security inside of his country -- polls are showing that the president is strong in that area -- and secondly, the state of the economy, which seems to be on the upswing.

President Bush just yesterday making his case.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I want to commend the Senate for moving the modernization bill forward. I look forward to them to completing their work and getting a bill to my desk that I can sign. Modernizing Medicare will make the system better and will enable us to say to millions of seniors, we've kept our promise to America's seniors.

(END VIDEO CLIP)

MALVEAUX: Potential political backlash, of course. Democrats vehemently oppose this, but also conservative Republicans. They take a look at the price tag, and they say $400 billion, way too expensive for the government, and they just can't afford this. But the political calculus here is that this will resonate with voters -- this drug prescription as well as Medicare reform now as opposed to what this is going to cost baby boomers later -- Bill.

HEMMER: The first significant change of that program in 38 years going back to 1965. Suzanne, thanks.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.