Stalking the Giant Chicken Coop
By BOB HERBERT
Published: December 8, 2003
…Think of Medicare as a giant chicken coop. Keep in mind that the hostile-to-Medicare Republicans control the presidency and both houses of Congress. Now you decide who the foxes and the chickens are. (Hint: we're not talking about spring chickens.)
…The bill that President Bush will sign today is a giant windfall for the drug companies, opening up a huge new market with virtually no effort to restrain prices. It will give Medicare recipients a modest drug benefit, but at a potentially dreadful cost. The bill starts the process of undermining Medicare by turning parts of it over to insurance companies, H.M.O.'s and other private contractors.
The drug benefit will be delivered almost entirely through private insurance plans. It would have been more efficient and cheaper to deliver it the same way other Medicare benefits are delivered. But that's not the idea. The Bush administration has mastered the art of legalized banditry, in which tons of government money ? the people's money ? are hijacked and handed over to the special interests.
Drug company stock prices soared with the passage of the Medicare bill, a sign that another government vault had been blown open and the big Medicare money was in play. The Republicans are not subtle about these matters. The bill, for example, specifically prohibits the government from negotiating discounts or lower drug prices, and bars the importation of cheaper drugs from abroad.
And then there's the "demonstration" project, to begin in 2010, in which Medicare will be forced in several cities to compete against private, profit-making health plans. It will be a rigged competition in that, among other things, the private plans will be heavily subsidized by Medicare money and will be able to cherry-pick the healthiest patients.
As one Capitol Hill staffer told me last week: "This is more than the camel's nose under the tent. This is like the head, the hump and everything else."
