Tag Archives: domestic priority

Health reform moves to close U.S. Medicare drug gap

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Health reform moves to close U.S. Medicare drug gap

Democratic leaders moved on Friday to build support among the elderly for a massive overhaul of the U.S. healthcare system, saying the measure would immediately start closing a gap in Medicare prescription drug coverage.

The coverage gap, the so-called doughnut hole, occurs after a certain amount of money is spent. This year that level is $2,700 of which $896 is out of pocket expenses by the beneficiary. Coverage begins again once drug costs reach $6,154.

Speaker Nancy Pelosi said the healthcare reform bill being considered by the House of Representatives would reduce the that doughnut hole and lower the cost of medicine for as many as 4 million elderly next year.

“As of January 1, 2010, our legislation will give a 50 percent discount for brand-name drugs to recipients in the doughnut hole, and it will reduce the size of the doughnut hole by $500,” Pelosi said.

An earlier version of the bill would have started closing the doughnut hole beginning in January 2011.

House Democratic leaders are working to merge three healthcare reform bills approved by committees into a single bill that can pass the House and give President Barack Obama a major victory on a top domestic priority.

The emerging bill would also gradually eliminate the gap in prescription drug coverage in 10 years. The earlier version of the bill would have eliminated the gap in 15 years.

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Senate panel backs healthcare reform

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Senate panel backs healthcare reform

A key U.S. Senate committee endorsed a sweeping healthcare overhaul on Tuesday, gaining the support of an influential Republican and delivering President Barack Obama a victory on his top domestic priority.

The Democratic-controlled Senate Finance Committee approved the measure on a 14-9 vote, with Senator Olympia Snowe becoming the first Republican in Congress to back a healthcare reform bill.

“Today we reached a critical milestone in our effort to reform our healthcare system,” Obama said after the vote, warning there were still big challenges ahead for healthcare reform.

The bill, the last of five pending health measures to clear a committee in Congress, will be merged with the Senate health panel’s version in the next few weeks for a full Senate debate and floor votes.

Snowe, who had been courted by Obama and his fellow Democrats, said she still had reservations about the overhaul and could not guarantee her continued support as it advances.

“My vote today is my vote today. It doesn’t forecast what my vote will be tomorrow,” Snowe said.

Health insurer companies stocks fell on fears reform was gaining steam and would hurt profits if it passed. The S&P Managed Health Care index of large health insurers was down 1.9 percent.

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Senate health bill costs pegged at $829 billion

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Senate health bill costs pegged at $829 billion

A U.S. Senate Finance Committee health plan would cost $829 billion and cut the budget deficit by $81 billion over 10 years, nonpartisan budget analysts said on Wednesday in a report that could bolster President Barack Obama’s healthcare reform drive.

The preliminary estimate from the Congressional Budget Office also said the bill would reduce the number of uninsured people in the United States by about 29 million by 2019.

The bill would meet Obama’s push for a healthcare plan that does not increase the budget deficit, according to the CBO. The estimate could ease the way for committee approval of the measure in the next week.

“This is another important step forward for health reform,” White House spokesman Reid Cherlin said.

Republicans, saying they were concerned about the bill’s costs and potential impact on the budget deficit, had demanded the estimate before they cast a vote on the proposal to transform the $2.5 trillion healthcare system.

The bill, one of five pending in Congress on Obama’s top domestic priority, would require individuals to have health insurance and would offer subsidies to some people to help pay for it.

Insurers would face stiff new regulations — including a prohibition on rejecting coverage for people due to pre-existing medical conditions — and the bill would impose a tax on higher-cost insurance plans.

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