[Press Release] The Impact of the Congressional Elections on Health Care

from Families USA

The following is the statement of Ron Pollack, Executive Director of Families USA, about the impact of the congressional elections on health care:

“Big changes in the composition of the House and Senate will have a profound impact on national health policymaking in 2007 and 2008. As a result, some issues, such as expansion of children’s health care coverage and improvements to the Medicare Part D program, will receive a tremendous boost when the new Congress convenes in January. Other policy agendas, such as cuts to the Medicaid program and the promotion of Health Savings Accounts (HSAs), are likely to be relegated to the back burner.

Issues that will get a boost: “By far, the most significant matter that can reach positive resolution in the new Congress will be the expansion of children’s health coverage. This is because, in 2007, the 10-year authorization of the State Children’s Health Insurance Program (SCHIP) expires and will need to be renewed.

“Due to its broad bipartisan support, SCHIP no doubt will be reauthorized. However, since approximately 9 million children continue to be uninsured, the real question before Congress is whether the reauthorization process will expand health coverage and provide adequate SCHIP funding for those children who don’t have coverage and whose families can’t afford it. A simple reauthorization will be a major disappointment.

“Another critical issue is skyrocketing prescription drug prices and whether Congress will lift the legislative prohibition that prevents Medicare from bargaining with the drug companies to secure lower prices. This prohibition is vigorously supported by the drug lobby and the Bush Administration, but the new Speaker, Nancy Pelosi, has promised to revisit this issue in early January—within the first 100 hours of the new Congress.

“Today, the Department of Veterans Affairs (VA) bargains successfully to keep drug prices low for America’s veterans. The VA’s success demonstrates the stakes in this debate. Among all of the top-20 drugs prescribed for seniors, the VA has achieved much lower prices than the lowest prices charged by all Medicare Part D plans. The median price difference is an astounding 46 percent.

“In addition, the Medicare bargaining issue may open the door to legislation that enables U.S. residents to re-import drugs from Canada and other countries, as well as securing greater transparency in Medicare drug pricing. When Part D plans seek rebates from the drug companies, they are required to pass on only some unidentified portion of those rebates to seniors and taxpayers. Neither seniors nor members of Congress are informed about the rebate portions retained by plans, and Congress may decide to make these transactions transparent and to force the plans to pass on all of the savings.”

Issues relegated to the back burner: “Just as importantly, several key issues are likely to be relegated to the congressional back burner. First, major changes in the safety-net Medicaid program, which would result in cutbacks in eligibility, benefits, and cost-sharing to low-income seniors, children, and families, are unlikely to be adopted. Last year’s Medicaid cutbacks were adopted by a 50-50 vote in the Senate, and any such cutbacks are unlikely to receive favorable consideration now.

“Second, proposed expansions of health savings accounts (HSAs) are almost certainly ‘dead before arrival.’ Fortunately, this Congress is unlikely to consider legislation that promotes higher deductibles and other increased health care costs for America’s consumers, and this Congress won’t expand HSAs that result in disproportionate, regressive tax benefits for the wealthy.

“Third, bills promoting so-called ‘association health plans’ (AHPs) are unlikely to be considered if those bills strip away state-enacted consumer protections, such as protections that prevent insurance companies from discriminating against people with disabilities or chronic health conditions. Any desire to improve small businesses’ ability to band together will need to safeguard important rights that the states have already established.”