The 2004 Campaign Just Began

By James R. Hood
Caregivers USA News

November 11, 2002
Now that it has won control of both houses of Congress, the Republican Party is determined to provide prescription drug benefits to the elderly, offer tax credits to the uninsured and limit medical malpractice awards, hoping to ward off Democratic attacks on the GOP's health care record in the 2004 elections.

Sen. Grassley

A key player when the new Congress convenes in January will be Sen. Charles E. Grassley (R-IA), who is expected to chair the Finance Committee. Grassley was one of the chief sponsors of a "tripartisan" drafted over the last two years that is expected to be the starting point for legislation in the 108th Congress. (See Grassley on Caregiving)

That bill, which closely resembles legislation passed by the House, would have provided government subsidies to private insurers who offer drug coverage for a monthly premium of about $24. The policy would cover 50 percent of drug costs up to $3,450 per year. After consumers spent $3,700 of their own money, the government would cover 90 percent of drug costs. Besides Grassley, the measure was sponsored by Olympia Snowe (R-ME), Orrin Hatch (R-UT), James Jeffords (I-VT) and John Breaux (D-LA).

Grassley has said he is confident he can build a bipartisan consensus for a similar measure in the next Congress. The Iowa Republican said Medicaid issues are also high on his agenda.

"Given state budget shortfalls, it'll be necessary to look at how Medicaid funding issues affect the health care coverage of low-income children, families, disabled individuals and older Americans," he said. "I also expect that states will continue their current efforts to secure a greater federal share of Medicaid funding from Congress. I hope to hear and develop creative ideas for addressing that issue."

The White House is pushing its plan to authorize tax credits for the cost of health insurance bought by people who are not covered by an employer's plan and are not eligible for publicly-funded programs. Democrats have blocked the proposal, saying government should expand its programs to cover the uninsured middle-class.

President Bush also strongly supports a House bill that would cap damage awards in medical malpractice lawsuits. It would cap damages for pain and suffering at $250,000 and limit punitive damages to $250,000 or twice the amount of economic damages, whichever is greater. The House passed the measure 217-203 but the Democratic Senate leadership did not act on it.