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CNN Live Sunday

Debate Begins Tuesday on HMO Bill

Aired June 17, 2001 - 17:32   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.
STEPHEN FRAZIER, CNN ANCHOR: The stage is set for the next big battle in the United States Senate. Just how to protect Americans enrolled in Health Maintenance Organizations, HMOs -- debate begins Tuesday on a bill favored by Democrats. The passage of the bill could lead to a showdown with President Bush, who has promised to veto it. Here's White House correspondent Kelly Wallace.

(BEGIN VIDEOTAPE)

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT (voice-over): Providing Americans enrolled with HMOs with protections is very popular. But the issue has stalled in Congress. Democrats say, this year will be different.

SEN. JOHN EDWARDS (D), NORTH CAROLINA: We have a consensus, middle of the road deal that we think does what we need to do, which is give real patient protection to patients.

WALLACE: Edwards, along with Democratic Senator Ted Kennedy and Republican John McCain are pushing a plan which most Republicans find unacceptable.

SEN. BILL FRIST (R), TENNESSEE: This particular bill will result in frivolous lawsuits which will line the pockets of trial lawyers.

WALLACE: Frist, Democrat John Breaux, and newly independent Senator Jim Jeffords are promoting a competing measure that has the backing of the White House. The two bills have many similarities. Both provide freer access to emergency room care, pediatricians, and OB-Gyns; and to experimental treatment; and the right to sue their HMOs.

Just how much of a right is where the plans differ greatly. The McCain-Edwards-Kennedy bill allows lawsuits in state and federal court; includes unlimited federal pain and suffering damages; and caps federal punitive damages at $5 million.

Democrats say their plan won't, as Republicans charge, invite frivolous lawsuits.

SEN. EDWARD KENNEDY (D), MASSACHUSETTS: We know that when you have the liability provisions put into legislations, the HMOs more often do the right thing. WALLACE: The Frist-Breaux-Jeffords plan ban lawsuits in state court; caps federal pain and suffering damages at $500,000; and bans federal punitive damage awards.

The new Senate minority leader hinted there may be room for compromise.

SEN. TRENT LOTT (R-MS), MINORITY LEADER: I can see circumstances where, being able to go to state court would be acceptable.

WALLACE: Hoping to defeat the Democratic plan, insurance companies will run ads this week.

(BEGIN VIDEO CLIP)

ANNOUNCER: It could force small businesses like hers to cut health insurance benefits because of expensive new health care lawsuits.

(END VIDEO CLIP)

WALLACE: And President Bush vowed to veto the Democratic plan in its current form.

(on camera): This sets the stage for what could be the first real test of the Democratically controlled Senate, and Mr. Bush's ability to get what he wants in this new political landscape.

Kelly Wallace, CNN, the White House.

(END VIDEOTAPE)

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