Senators Tempers Flare During Senior Care & Lobbyists Influence Debates

(Republican Sen. Jon Kyl and Democratic Sen. Max Baucus butt heads while debating differences in their approach to health care legislation.)

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(Former Congressman Dick Armey discusses how much influence the Lobbyists currently have on Capitol Hill.)

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(Wyoming’s Republican Sen. John Barrasso, who’s been critical of the president’s reform push, joins Morning Meeting to discuss the Wyden Amendment which would allow consumers to pick their health care plan, if passed.)

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Drug industry clout reflected in Senate vote

Senators rebuffed an attempt to squeeze more money from the drug industry Thursday after two Democrats warned it would undermine the fragile political coalition pushing a sweeping health care overhaul.

The Senate Finance Committee voted 13-10 to reject an amendment that would have required the industry to rebate $106 billion over 10 years to the government for medications used by low-income Medicare beneficiaries. Three Democrats, Bob Menendez of New Jersey, Tom Carper of Delaware, and Chairman Max Baucus joined Republicans in voting against the proposal.

Minutes earlier, Menendez and Carper warned that approval of the amendment could undermine support for the overall legislation. Not only are pharmaceutical companies major employers in their states, but the industry is also a leading backer of overhauling the health care system this year. The vote reflected the industry's clout.

The author of the amendment, Sen. Bill Nelson, D-Fla., had wanted to use the money to close the coverage gap in the Medicare prescription benefit — long a policy goal for Democrats. But would have been on top of $80 billion in reduced fees the industry already agreed to in a deal with the White House and Finance Chairman Max Baucus. Senators said the White House lobbied against Nelson's amendment.

Carper said after the vote that the drug companies had not said they would have abandoned the deal if the amendment passed. But he added: "I know I would...I'd say, 'Take a hike.' "

Menendez told senators during debate that Nelson's amendment "may very well undermine the essence of this agreeement" and "put us in a position that makes it very difficult to move forward."

As senators began their third day of slow-moving deliberations, benefits for seniors on Medicare — and their costs_ emerged as a flashpoint.

The committee voted 13-10 along party lines to reject an amendment by Sen. Orrin Hatch, R-Utah, that would have delayed coverage for the uninsured if a million or more people who now have insurance wound up having to pay higher premiums as a result of the legislation.

Hatch said his amendment was intended to protect seniors who signed up for private insurance plans through Medicare and could lose some benefits as a result of cuts to the commercial plans. About 10 million seniors are now signed up through the private plans, about one-fourth of Medicare recipients. The 'Medicare Advantage' plans can offer enhanced benefits because the government pays them more than it costs to care for seniors in traditional Medicare.

More amendments on the issue are expected, including a Democratic alternative from Nelson that would shield seniors currently in private plans from the cuts.

With polls showing seniors are skeptical about Obama's call for legislation, Democrats said the bill included numerous provisions to enhance benefits under Medicare, and Baucus said it would improve the solvency of the financially strained Medicare trust fund.

The Finance Committee is the last of five congressional panels to debate health care legislation that is atop Obama's domestic agenda. While the bill omits several provisions backed by liberals, Baucus hopes to hold support from all Democrats on the panel, and perhaps pick up support from Republican Sen. Olympia Snowe of Maine as well.

Snowe has yet to disclose her intentions, and while she sometimes sided with fellow Republicans during the day, she also voted with Democrats at other points.

At its core, the bill is designed to expand health insurance coverage to millions of people who lack it, employing a new system of federal subsidies for lower-income individuals and families and establishing an insurance exchange in which coverage would have federally guaranteed benefits. Insurance companies would be prohibited from refusing to sell insurance based on an individual's health history, and limits would be imposed on higher premiums based on age.

At the same time, Baucus — in keeping with Obama's wishes — drafted legislation that would reduce the skyrocketing rate of medical spending overall. The bill's price tag is less than $900 billion over a decade.

Legislation already has cleared three committees in the House, and the leadership is slowly piecing together changes that could lead to a vote next month.

Senate Majority Leader Harry Reid, D-Nev., has said he intends to bring legislation to the Senate floor as soon as possible.

Whatever measure emerges from the Finance Committee must be blended with a bill that cleared the Senate Health, Education, Labor and Pensions Committee several weeks ago.

Sources: MSNBC, Huffington Post, Miami Herald