A trap has been set for politicians who would oppose legislation that could forever change the nature of Medicare.

Offering a prescription drug benefit and hard cash for rural hospitals and doctors as bait, the legislation has, at its core, the purpose of unraveling the universal nature of Medicare and pushing senior citizens toward HMOs.

A bipartisan group of 44 senators signed onto a letter circulated by Maine’s Olympia Snowe Friday expressing concern over the proposed changes to Medicare.

“The volume of support from members of both parties demonstrates the magnitude of concern we have over including this untested ideological venture that is unrelated to the drug benefit in this bill. This proposal will serve to end Medicare as we know it for millions of senior and disabled Americans,” Snowe said in a statement released by her office. “Passing a bill to extend prescription drug coverage to our seniors should be Congress’ top priority. However, it should not be manipulated so that the final policy undermines the Medicare program.”

That’s the trap. This backdoor scheme to privatize Medicare is wrapped in a bow of a much-needed prescription drug benefit for the 40 million Americans that rely on the government-run program for their health care.

Be prepared. Those who question the sketchiest details in the plan will be painted by the Bush administration and its lackeys in Congress as obstructionists. Arms will be twisted and moderate Republicans, like Snowe and Sen. Susan Collins, can expect a lot of pressure. Don’t be surprised if political ads, paid for by drug makers, the National Association of Manufacturers and American Association of Health Plans start showing up on television.

Negotiators began allowing details of their 1,100-page compromise to trickle out over the weekend, but a full picture of the law is not yet available. Here’s what we know so far.

• The drug benefit would not start until 2006. Until then, seniors could buy a discount card to help with drug costs.

• Rural hospitals would receive $25 billion more in Medicare reimbursements, including an increase in the fees paid to doctors.

• $12 billion would be set aside to help managed-care providers compete with Medicare.

• Premiums for Medicare would increase for some recipients and the yearly deductible would increase every year.

• According to the Associated Press, participants would be offered a chance to purchase coverage at a monthly premium of $35. After a $275 deductible, coverage would pick up 75 percent of drug costs up to $2,200. There would be no coverage for out-of-pocket expenses between $2,200 and $3,600. After that, coverage would resume, with beneficiaries required to make a limited co-payments.

• AARP supports it. “It will provide substantial relief for those with very high drug costs, and will provide modest relief for millions more.”

• As much as $88 billion of the package could be set aside to provide tax breaks and incentives for companies to keep them from dropping retirees’ drug benefits and forcing them into the new Medicare plan.

• President Bush has placed a $400 billion, 10-year cap on costs for the legislation. The expected price tag of the proposed legislation had not been released Monday afternoon.

There’s a lot to be digested. But we are skeptical of any legislation that promises a big payday for hospitals, doctors and drug companies, increases Medicare premiums, pushes privatization and gives big tax breaks to employers all under the guise of providing medicine to seniors.


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