Governors Want Medicare Compromise to Ease States' Drug Costs for Elderly

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http://ap.tbo.com/ap/breaking/MGAPOYJTYID.html

Governors Want Medicare Compromise to Ease States' Drug Costs for Elderly Poor
By Mark Sherman Associated Press Writer
Published: Aug 4, 2003

WASHINGTON (AP) - The nation's governors, facing large budget deficits, are pressing lawmakers to lift the states' $7-billion-a-year burden of paying for prescription drugs for the 6.2 million Americans who receive both Medicare and Medicaid. The governors see an opportunity to cut states' rising health care costs as negotiators for the House and Senate attempt to reconcile their versions of a new prescription drug benefit under Medicare, the federal health program for older and disabled Americans.

The House bill would give drug coverage to all Medicare recipients, phasing out over 15 years the states' obligation to pay drug costs. The Senate version would deny a Medicare drug benefit to people - dubbed dual eligibles - who also are enrolled in Medicaid, the joint federal-state health program for poor people.

All 50 governors signed a letter to Rep. Bill Thomas, R-Calif., the lead House negotiator, urging lawmakers to keep the House provision in the final bill. Kentucky Gov. Paul Patton, a Democrat who chairs the National Governors Association, said Monday that the issue is of "vital importance" as governors try to cope with budget shortfalls.

The federal government pays the entire bill for Medicare. But states pay about a third of the cost of Medicaid, about $40 billion annually just for people who are covered by both government health programs, the governors association said. Prescription drug costs account for $7 billion, the association said. <snip>

My Comment: for once the House version of a provision is more logical – States need the help, and Medicare should remain a set of guaranteed by the Federal Government benefits – not a mix of Federal benefit and State benefit if the state has a drug benefit you can used under Medicaid..