Agency Sees Withholding of Medicare Data
From Congress as Illegal
By ROBERT PEAR
Published: May 4, 2004
WASHINGTON, May 3 — The Congressional Research Service
says the Bush administration apparently violated federal law by
ordering the chief Medicare actuary to withhold information from
Congress indicating that the new Medicare law could cost far more
than White House officials had said.
In a report on Monday, the research service said that
Congress's "right to receive truthful information from federal
agencies to assist in its legislative functions is clear and
unassailable." Since 1912, it said, federal laws have protected
the rights of federal employees to communicate with Congress, and
recent laws have "reaffirmed and strengthened" those
protections.
The actuary, Richard S. Foster, has testified that he was
ordered to withhold the cost estimates last year, when Congress
was considering legislation to add a drug benefit to Medicare.
The order, he said, came from Thomas A. Scully, who was then the
administrator of Medicare.
Mr. Foster said Mr. Scully threatened to discipline him for
insubordination if he gave Congress the data.
The research service, a nonpartisan arm of Congress, said Mr.
Scully's order "would appear to violate a specific and express
prohibition of federal law." The actuary, it said, has a duty to
"make professional and reliable cost estimates, unfettered by any
particular partisan agenda."
In March, Bush administration officials suggested that they
would provide the actuary's cost estimates to Congress. "We have
nothing to hide, so I want to make darn sure that everything
comes out," Tommy G. Thompson, the secretary of health and human
services, said on March 16. But a month later, in a letter to
Congress, the administration refused to provide the
documents.
Mr. Scully has confirmed telling Mr. Foster that "I, as his
supervisor, would decide when he would communicate with
Congress."
William A. Pierce, a spokesman for the Department of Health
and Human Services, said on Monday that the propriety of Mr.
Scully's action was being investigated by the agency's inspector
general. In any event, Mr. Pierce said, "we are looking to the
future, not the past."
On Monday, the administration opened a campaign to persuade
millions of older Americans to sign up for prescription drug
discount cards.
Secretary Thompson said Medicare beneficiaries nationwide
would have access to at least 39 cards offering savings of 10
percent to 25 percent off the retail prices charged to people
without drug insurance.
"For the first time," Mr. Thompson said, "we are going to pool
the purchasing power of Medicare beneficiaries to drive down the
prices they pay for prescription drugs." Before choosing a card,
he said, beneficiaries should carefully compare the prices
available with different cards for the drugs they use.
Mr. Thompson said beneficiaries could start using the cards
next month and could continue using them until January 2006, when
Medicare's drug benefit begins.
A big challenge for beneficiaries is to overcome the confusion
surrounding the new cards. Sponsors of the discount cards said
that many of the prices posted on the official Web site,
www.Medicare.gov, were still incorrect — an assertion
disputed by Mr. Thompson — and some sponsors were quoting
prices different from those posted by the government.
Neil D. LaGrow, 80, of Culpeper, Va., who said he spent $890 a
month on 15 medications, predicted that the discount cards would
be "tremendously helpful."
Howard J. Bedlin, vice president of the National Council on
the Aging, a research and advocacy group, said the cards would be
"very valuable" to low-income people. Individuals with annual
incomes of $12,569 or less and couples with incomes of $16,862 or
less will be eligible for a credit of $600 a person on their
cards.
In addition, Mr. Bedlin noted, some major drug companies, like
Merck and Novartis, have said they will offer their medicines at
no charge or for a very small fee to low-income people who use up
the $600 credit. Moreover, he said, some states will pay drug
costs for low-income people who exhaust the $600 allowance.
For people with incomes above the thresholds, Mr. Bedlin said,
the value of the discount card will vary, depending on what drugs
they take.
Congressional Democrats said the savings would prove illusory
for most beneficiaries.
"This sounds like a good deal, but it isn't," said
Representative Nancy Pelosi of California, the House Democratic
leader.
Representative Pete Stark of California, senior Democrat on
the Ways and Means health subcommittee, said: "The cards provide
maximum confusion and minimal savings. These deep discounts were
a figment of the Republicans' imagination."
Prices available with the new drug cards are, in many cases,
higher than those available to any consumer using online
pharmacies.
Peter M. Neupert, chairman of drugstore.com, said: "In
general, our prices are lower than those offered by many of the
Medicare card sponsors. Our operating costs are a bit lower than
those of bricks-and-mortar drugstores."
In addition, Mr. Neupert said, his company's Web site is
easier to use than the new Medicare site.
Copyright 2004 The New York Times Company
"CRS legislative attorney Jack Maskell found that
Scully's threat to fire Foster, which Scully has said was meant
only in jest, probably violated the intent of a 1912 statute that
says a federal employee's right to communicate with and provide
information to Congress "may not be interfered with or
impeded."
Maskell's analysis cites a string of federal and Supreme Court
rulings to make the case that government workers can't be impeded
in their communication with lawmakers.
The common logic, as a 1927 Supreme Court ruling put it, is that
a "legislative body cannot legislate wisely or effectively in the
absence of information regarding conditions which the legislation
is intended to affect or change."
|