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    AP Enterprise: GOP won't touch Medicare drug plan

    WASHINGTON (AP) — Republicans want to pull the plug on the health care overhaul they call "Obamacare," blaming it in part for the United States' ballooning budget deficit.

    But they're quiet when it comes to the Medicare drug benefit — another massive health care entitlement, with unfunded future costs over $7 trillion.

    Arguably, it could be driving up the deficit more than President Barack Obama's ambitious health care plan is.

    But when the Republican presidential candidates were asked last week asked if they would repeal the Medicare drug benefit, they said no way. After all, Republicans created it.

    Debt and deficit are the focus of the Republican Party as the 2012 presidential campaign moves through the nominating process and looks ahead to the general election. Yet the reluctance of GOP candidates to renounce a costly entitlement program that voters like shows how politics can come into play when critiquing the federal ledger.

    Passed by a GOP-led Congress in 2003 under President George W. Bush, the prescription program is immensely popular with older people, faithful voters who lately have been trending Republican.

    Medicare recipients pay only one-fourth of the cost of the drug benefit. Because there's no dedicated tax to support the program, the other three-fourths comes from the government's general fund. That's the same leaky pot used for defense, law enforcement, education and other priorities. It's regularly refilled with borrowed dollars that balloon the deficit.

    Although the health care law costs far more than the drug benefit, it's paid for, at least on paper. It includes unpopular Medicare cuts as well as tax increases on insurers, drug and medical device companies, upper-income people, and even indoor tanning devotees.

    Asked last week at the tea party debate if they would repeal the prescription program, GOP candidates would hear nothing of it.

    Texas Gov. Rick Perry said he would not, even though he said he's concerned about its cost. Cracking down on waste and fraud might be the answer, he suggested.

    "I wouldn't repeal it," said former Massachusetts Gov. Mitt Romney. He said he would restructure Medicare, but not for those now in the program or nearing retirement. The re-engineering supported by House Republicans this year and praised by Romney at the time would give future retirees a voucher-like payment to buy insurance from a range of private plans.

    Texas Rep. Ron Paul noted that he'd voted against the prescription benefit, but said repeal "sure wouldn't be on my high list. I would find a lot of cuts (in) a lot of other places."

    Budget hawks scoff.

    "I'm an equal opportunity critic here," said David Walker, a former head of the congressional watchdog agency. "I think the Republicans were irresponsible for passing the Medicare prescription program in 2003 and I think the Democrats were irresponsible for passing" Obama's health overhaul.

    As comptroller general of the Government Accountability Office for most of the past decade, Walker used his position to call attention to the nation's long-term budget problems at a time when the debt wasn't front-page news. He now leads the Comeback America Initiative, a nonpartisan group promoting fiscal responsibility.

    "There was no attempt to offset the cost of the Medicare prescription bill," Walker said. "It's fair to say that at least there was an attempt to pay" for the health law through a mix of spending cuts and tax increases.

    How big is the hole left by the prescription program? Over the next 75 years, its $7.5 trillion "unfunded obligation" exceeds the $6.7 trillion gap attributable to Social Security.

    "When they were designing the new health care law, the experience of the Medicare prescription bill was very much in their minds," said Robert Bixby, executive director of the Concord Coalition, a nonpartisan group advocating fiscal discipline. "They didn't want to have another unfunded expansion."

    Experts can debate whether future Congresses will suspend Obama's Medicare cuts and whether the long-range cost of extending coverage to more than 30 million uninsured will outpace the revenue to pay for it.

    As the reactions of the GOP candidates at the debate demonstrated, no one is seriously considering repeal of the prescription program.

    Thanks to taxpayers, about 90 percent of older people now have affordable access to medications that help keep them out of the hospital. Roughly two-thirds of those are enrolled in Medicare's benefit; many others are in former employers' prescription plans.

    Ironically, repealing Obama's overhaul would take away the most important improvement to the program since it was created. Obama's law gradually eliminates the dreaded coverage gap known as the doughnut hole. Millions of people will each save thousands of dollars as a result.

    Republicans like to point out that the cost of the prescription program is well below original estimates. They attribute that to competition among the private insurers providing the benefit.

    While competition is part of the story, experts say it's not the only reason. The shift to cheaper generic drugs among people of all ages has been a powerful contributor. That may not last forever. The trustees who oversee Medicare's finances warn in their latest report that spending on drugs will rise more rapidly in the future.

    Said Walker: "Basically what's happening is we're mortgaging the future of our children and grandchildren, and borrowing the money from China."

    ____

    Online:

    Medicare prescription drug plan: http://tinyurl.com/24xy54j

     

    143 comments

    • Tim P  •  8 mths ago
      Know how to make a republican scratch their head? Just ask them who was the last republican president that had our economy booming like Clinton did! LMAO!!!
      • JAMES 8 mths ago
        Want to know how to make a democrat worry? Remind him that Bill Clinton signed the bill to pass the NAFTA. He did that to get even with America for embarrassing him about his affair with Monica. Thanks to our democrat buddy, Bill, we lost six million jobs in the next three years!
      • Tim P 8 mths ago
        NAFTA was started in 1992 by, guess who? George H.W. Bush!
      • Richard 8 mths ago
        With all our other problems; blaming Clinton for NAFTA is just another smoke screen like the BP Spill. Oh yeah; when I was younger I thought "I Like Ike" was a cool saying!(or maybe I'd said "swell; daddy-o")
    • Ricochet  •  8 mths ago
      I wish there was as much focus on the cost of illegals to the taxpaying citizens as there is the taking of what they deserve!
      • TOMCAT 8 mths ago
        Can you people just leave the illegal argument alone for awhile, it is getting old and actually has no bearing on our problem.
        And besides, if your rich republican brothers did not hire them over legal Americans, they would leave.
      • rick 8 mths ago
        The cost of illegals? Hell, we ought to deport Congress! And Presbo too!
      • Henry Juhala 8 mths ago
        I too wish we would focus on the actual costs of illegals. First, I suspect you. like many others who make your kind of comment, actually are including all immigrants (including legal immigrant workers and perhaps even all brown-skinned people) in your statement. In truth, most "illegals" only cost the government about 46 percent of the amount of that they pay into all taxes.

        Even if they don''t pay federal income taxes, they still pay real estate taxes (yes, even if they rent), sales taxes, gasoline taxes, auto licenses and fees, toll road fees, utility taxes, phone and communication taxes, sin taxes like cigarettes, alcohol and gambling. Because many have false I.D.s and fake or false Social Security numbers, many pay into federal income taxes,Soc Sec. and Medicare they never get to collect on. The latter is the secret that most people don't want you to know beause they are actually helping to fund a Soc. Security system and Medicare system that is otherwise underfunded. You could say that Soc. and Medicare make a profit off of illegals.

        Most illegals, in order to not attract attention to the fact they might be illegal, keep a low profile and stay away from most govenrment programs unless of emergency. It is contrary to the notion that they are here to bleed the system dry of every penny they can get from it. The same is true of those who are legal citizens by virtue or illegal parents. They are not the kind of financial drain to government systems that many of the naysayers purport in their rants of animus against anything perceived as immigrants.

        Most immigrants in the long run contribute more to the system than they give out. In particular, when you compare the amount of taxes the poor illegal or even legal immigrant pays into the system as a PERCENTAGE of their income it is greater than the amount of tax that the very rich pay into the same systems as a PERCENTAGE of their incomes. Yet, who is it that we see being protected? It is the very rich whom the GOP will hold any program hostage for as a means of not raising taxes on the very rich.

        Likewise, our whole economic crisis can be attributed in part to the major crackdown in immigration after 9/11. With less and less numbers of both legal and illegal immigrants there was less demand on housing. During our most concentrated enforcement of immigaration policies in 2007/2008 our housing market also took a major nose dive. It is true there were other major factors at work already on the housing market that were already devasting it. But, with much less demand for housing on the immigration side, the housing bubble got the prick it needed to burst. That in turn sent the whole economic side of the equation into a tailspin. But, there are helpful remedies that immigrants can have a positive impact on (see my next post).
    • Tim P  •  8 mths ago
      @James... Do your research! NAFTA was started by no other than George H. W. Bush in 1992... Like i said, do your research!
      • Richard 8 mths ago
        We have to keep reminding folks of that. The GOP supporters keep using it as just another smoke screen to waylay good arguments and discussions.
    • KevinH  •  8 mths ago
      Of course they won't touch the medicare drug plan. Why would they address a 1 Trillion dollar, unfunded federal mandate that was passed through reconciliation vote.

      After all, why dredge up their own hypocrisy in all this right?
    • Bruce  •  8 mths ago
      Of course neither the GOP or the dems won't touch the Medicare drug plan. Senior vote and it scares the heck out of them. Did you guys know it was the GOP that started this new Medicare drug plan - when the GOP controlled both houses and Bush was in office. AND that they didn't pay for it. That's right, this plan is INCREDIBLY expensive and the Republicans never paid for it by either cutting the size of government or raising taxes to pay for it. Deficit now almost $15 TRILLION dollars and counting!!!
    • TOO OLD  •  8 mths ago
      Absolutely not. They wouldn't do anything to jeopardize their funding from big pharma.
    • .  •  8 mths ago
      They are right. The health care plan that isn't even in effect yet is solely responsible for the deficit, while the drug plan, tax cuts, and unfunded wars have been so very prosperous to the country.

      *insert eye roll*
    • Caesar  •  8 mths ago
      Also don't forget the sleazy fact that when Republicans crafted the Medicare Part D bill, they inserted a provision that expressly forbade the government from negotiating with drug companies for lower prices, thereby protecting the profit margins of drug companies. The slimeball behind the bill, Rep. Billy Tauzin of Louisiana, the chairman of the House Commerce Committee, left Congress the next year and was immediately hired, no doubt as a reward, as the President and CEO of Pharmaceutical Research and Manufacturers of America (PhRMA).
    • Cmdr  •  8 mths ago
      This sounds like the GOP is indorsing the Socialist Medicare plan. My god the world may stop rotating. Oops, do Republicans believe the earth rotates? What other liberal socialist ideas will the GOP endorse, free speech, freedom of religion, police and fire departments. OMG!
    • Richard  •  8 mths ago
      Funny thing, ain't it? Used to was; folks wanted to say Young! Now that we're OLD; we're Glad we Are! If I'm real lucky; I'll be DEAD before the prices go up too high to stay alive! The GOP is so anxious to help out their Rich Buddies and take all the cookies away from the rest of us, that most of us won't be able to afford to live before long! Right now I'm GLAD I'm Old!.....And I've got TWO pensions and Social Security and our house is ours free and clear, and I'm still scared!
    • DilldoTBaggins  •  8 mths ago
      Let's see. Two unfunded wars and an unfunded health care "entitlement" with no accompanying revenue stream. Typical Repugnacant hypocracy.
    • Tim P  •  8 mths ago
      Just one more "unfunded" thing the republicans want to do... Didn't they learn their lesson in Iraq and Afganistan? At least Obama pays for his programs!
    • Reality Check  •  8 mths ago
      get the picture the republican medicare plan is costing us trillions. republicans created the deficit slam them in 2012
    • JOSEPH S  •  8 mths ago
      the best way to reduce the cost of medicare part D - Drug plans ... is to repeal the provisions that prohibit Medicare from negoiating what they pay for drugs... VA pays 59% less for the same drugs as medicare because they can negoiate the price... Again just another example of Republicians giving away the ship to their buddies in big business.
    • Yahoo user  •  8 mths ago
      I think the entire drug plan is a joke. I take one pill monthly and it is a generic. The pill cost to me is $7 and the drug company pays 3 cents. For the privilege of taking this one pill I pay my drug company $44.50/month. I recently went to get a new prescription filled. The drug company didn't even cover the pill so I had to pony up $100 from my pocket.
    • Tim P  •  8 mths ago
      Hell Dennis... You have said what i have said all along... That republicans want to bring us back to the 1700's ! Thank you for confirming my beliefs!
    • Polo  •  8 mths ago
      You notice how the GOP and their backers don't call this government backed "Socialism". Funny hypocritical things aren't they, the GOP.
    • no  •  8 mths ago
      Why are healthcare costs exceeding the rate of just about everything on the planet here in America ?
    • howard  •  8 mths ago
      Well if medicare drug plan is costing so much we need to see how can change to make it less expensive.I know a lot of seniors cannot afford to pay a lot of money on drugs they need to use to keep living but why don't we make a plan so that people than can afford to pay more pay more so the plan cost less say people that make a million dollars a year pay close to full price there medication with a group discount .The same way with health care the rich pay more for their health coverage but they get a group discount for being in medicare .Now if i was bring in a million dollars a year i wouldn't mind paying a higher rate for my percripson than some one just living on social security.The same way for large corporation the executives pay more than the blue collar workers .Government and the military the same way the Generals pay more for health care than the private's but lets not make them pay for whole thing .General pay like a 200 dollar co pay while the private pay a 25 dollar co pay going slowly up as go up the ranks .Work the same thing out with medicare and medicaid also same with social security .Iam sure the Warren Buffets won't need Social security when they retire
    • no comment  •  8 mths ago
      Well, we wouldn't want our drug companies to lose out on any profiteering action.
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