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Judge halts Bush drug discount card program
Reuters ^ | September 6, 2001 | none

Posted on 09/07/2001 2:49:45 AM PDT by BigWaveBetty

WASHINGTON (Reuters) - A federal judge on Thursday temporarily stopped the U.S. government from carrying out President Bush (news - web sites)'s program to provide discount cards for seniors to buy prescriptions.

U.S. District Judge Paul Friedman granted a request from the National Association of Chain Drugstores for a preliminary injunction halting the program that Bush announced several months ago.

The judge found the Health and Human Services (news - web sites) Department did not have the legal authority for the program, that a notice-and-comment period was required and that the drugstores would suffer ``irreparable harm'' if the program went forward.

In July, Bush had outlined a plan with great fanfare for seniors to be able to receive discount cards for prescriptions, and that congressional approval would not be needed.

The plan was for seniors to pay about $25 for the cards and that the companies managing the cards would be responsible for negotiating lower prices.

The White House said the decision would only hurt senior citizens.

``Today's decision is a loss for seniors because it will only further delay the ability of seniors to get the same kind of discounts that other Americans already receive through private health plans,'' White House spokesman Scott McClellan said.

Justice Department (news - web sites) spokesman Charles Miller said government lawyers would review the ruling and decide whether to file an appeal.

Trade groups like the National Association of Chain Drugstores accused the Bush administration of consulting privately with pharmacy benefit managers -- rather than lawmakers and affected parties -- to create the discount card plan.

The trade group's lawsuit was being watched closely since Medicare, the federal health care insurance program for people aged 65 and over, provides health coverage for approximately 40 million senior citizens.

The lawsuit had been filed by trade groups representing 55,000 pharmacies and 130,000 pharmacists. It said the Department of Health and Human Services (news - web sites) unlawfully set standards for the plan and anticipates spending millions of dollars without congressional approval or discussion at open meetings.

``We're delighted that the process has been stopped and that we will have an opportunity to participate in any program that affects our interests, and we think this is a great victory for seniors and their pharmacies,'' said Larry Kocot, general counsel for the National Association of Chain Drugstores.


TOPICS: Government; Miscellaneous
KEYWORDS:
U.S. District Judge Paul Friedman granted a request from the National Association of Chain Drugstores for a preliminary injunction halting the program that Bush announced several months ago.

[snip]The lawsuit had been filed by trade groups representing 55,000 pharmacies and 130,000 pharmacists.

******************

But...but...I thought it was just the mean evil Pharmaceutical Companies AND Republicans who wanted to keep seniors from getting their medicines.

1 posted on 09/07/2001 2:49:45 AM PDT by BigWaveBetty
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To: BigWaveBetty
The plan was for seniors to pay about $25 for the cards and that the companies managing the cards would be responsible for negotiating lower prices.

I.e. a program of competitive bidding. What's so bad about that?

2 posted on 09/07/2001 2:57:13 AM PDT by HiTech RedNeck
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To: ALL
Friedman Biography

U.S. District Court Judge, District of Columbia. Room 6321, [address redacted] Washington, DC, 20001. 202-273-0440.

Judge Paul L. Friedman was an assistant to Lawrence Walsh in Iran-contra investigation. He was appointed to the bench by President Bill Clinton. His best known decision is FEC v. GOPAC, 897 F.Supp. 615 (DDC 1995), in which he ruled against GOPAC. Judge Friedman was also an attorney in the law firm of White and Case for almost two decades.

Judge Friedman was born February 20, 1944. He received his B.A. from Cornell in 1964, and his J.D. from S.U.N.Y. Buffalo in 1968.

3 posted on 09/07/2001 3:03:52 AM PDT by BigWaveBetty
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To: HiTech RedNeck
Well then people might want to run their own lives!!! The horror!!! Dem's can't have that now can they?
4 posted on 09/07/2001 3:05:49 AM PDT by BigWaveBetty
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To: BigWaveBetty
What gets me, is why did Congress have to do a thing. Why couldn't private companies up and cobble together bidding blocs on their own accord.
5 posted on 09/07/2001 3:10:23 AM PDT by HiTech RedNeck
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To: BigWaveBetty
Sounds like we need more accountability for judges, doesn't it? Like electing them instead of appointing them, or a yearly review of their decisions.

We have tried this "appoint them so they are above the fray of unpopular but legally correct decisions" theory and it does not work well.

I notice that our local judges, who have to run for office, are unfailingly polite to jurors- who are also voters! I think we need this kind of accountability at higher levels, too!

6 posted on 09/07/2001 3:11:40 AM PDT by backhoe
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To: HiTech RedNeck
Kickbacks maybe?! Heck I can't figure it out either. The one thing I know for sure is Dem's must have a goodie bag to pass around at election time.
7 posted on 09/07/2001 3:13:55 AM PDT by BigWaveBetty
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To: backhoe

You know they'll have to tie a pork chop aroung his neck to get votes. LOL

8 posted on 09/07/2001 3:52:01 AM PDT by BigWaveBetty
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To: BigWaveBetty
The judge found the Health and Human Services (news - web sites) Department did not have the legal authority for the program, that a notice-and-comment period was required

Either this is true or it is not. Stop the Bush worship and address the facts.

9 posted on 09/07/2001 6:07:38 AM PDT by DAnconia55
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To: DAnconia55
Bush Unveils Medicare Prescription 'Discount Card' Program

Cheaper Drugs to be Available Next January By Sean Martin

WebMD Medical News

July 12, 2001 (Washington) -- President Bush unveiled an initiative Thursday to give seniors rapid access to lower-cost prescription drugs, announcing that voluntary Medicare-endorsed drug discount cards will be available later this year.

"Present the card at a participating pharmacy, and you receive a substantial discount," Bush said. "The new drug discount plan combines the purchasing clout of millions of seniors to negotiate lower prices than under the current system."

The plan needs no congressional action, because officials said that the Medicare program has the authority to undertake the initiative.

According to the Bush administration, that means seniors will save anywhere in the range of 10% to 25% on the retail prices of prescription drugs.

Officials said that competing private-sector discount plans could start enrolling beneficiaries this October, with cheaper drugs available by January 2002.

A senior would only pay a one-time enrollment fee of no more than $25, to receive discounts from one of the private-sector plans. Bush officials said they hoped competition would bring zero-fee offerings from the plans.

To join a discount plan, seniors would contact the Medicare program at www.medicare.gov or 1-800-MEDICARE, which would then direct them to the participating firms for enrollment. Medicare is spending $35 million later this year on an "ad campaign" to promote private-sector options in the program.

Officials didn't say how many seniors they expected would enroll in the voluntary drug discount program, but the Bush administration says more than 10 million older Americans on Medicare do not have any drug coverage.

The CEOs of five large national pharmacy benefit management firms -- AdvancePCS, ExpressScripts, Caremark, Wellpoint, and Merck-Medco -- came to the White House to announce their participation in the Bush discount plan.

Republican lawmakers who attended Bush's Rose Garden announcement told reporters that the discount plan was a good first step toward addressing drug prices.

"I'm very pleased," said House Ways and Means Committee Chairman Bill Thomas (R-Calif.). The plan, he said, will bring "immediate benefit" while Congress works over additional measures.

Sen. Charles Grassley (R-Iowa) said, "President Bush recognizes the urgent need to help older Americans get prescription medications at a lower price right now."

William Novelli, executive director of AARP, formerly known as the American Association of Retired Persons, said the discount plan "adds real momentum to achieving a prescription drug benefit in Medicare."

But most Democrats didn't attend the White House ceremony, ripping the Bush proposal in subsequent press conferences. They claimed the discount plan is a gimmick that fails to meaningfully address the lack of drug coverage under Medicare and the overwhelming burden of high drug prices.

"It is utterly, absolutely superficial," said Sen. Jay Rockefeller (D-W.Va.). According to Sen. Edward Kennedy (D-Mass.), "The administration's plan is like telling a patient with a heart attack: Take two aspirin and call me in the morning."

Joe Baker, executive vice president of the Medicare Rights Center, said, "older and disabled Americans already have access to pharmacy discount cards, which are merely a drop-in-the-bucket towards paying for the drugs they desperately need and cannot afford." Meanwhile, pharmacists are concerned that the discount card program will cut into their profits. Bush health secretary Tommy Thompson said, "prices are going to be lower ... but there is going to be more traffic."

An earlier Bush drug proposal, the "Immediate Helping Hand" plan of state-based Medicare drug subsidies for poorer seniors, met a cold reception in Congress.

Beyond the discount program, Bush also outlined principles for Medicare reform that he recommended Congress reflect in legislation it may act on later this year.

Bush called for an expanded array of private-sector health insurance choices that would offer prescription drug coverage. He also endorsed a "modernized" Medicare package that would include zero-copayment for preventive services. But he said that current beneficiaries and "those approaching retirement" should have the option of keeping their traditional coverage intact.

The Senate Finance Committee is planning to act on a Medicare reform package later this month. Under the congressional framework, $300 billion is set aside over the next 10 years for a drug benefit and Medicare reforms.

But an agreement between Democrats and Republicans may be difficult. Republicans insist that a bill establishing new Medicare drug coverage also modernize the rest of the program, but Democrats are fearful of changes that they claim would herd seniors into managed care plans.

Medically Reviewed
By Dr. Dominique Walton
© 2001 WebMD Corporation. All rights reserved.

Now through out the election we all heard from Dems about how our seniors were going without medicine. That Bush was in the pocket of BIG PHARMACEUTICALS COMPANIES. He wasn't out to help the little guy. But lo and behold when he does try to help without dragging the mountain of government into it all we hear is "but what about the money?!" There must be study!(aka more money)

I don't have a problem with a finding out how to approach this in most cost effective manner, but shouldn't Rx companies should have known this was coming?

10 posted on 09/07/2001 9:17:14 AM PDT by BigWaveBetty
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To: BigWaveBetty
The judge found the Health and Human Services (news - web sites) Department did not have the legal authority for the program, that a notice-and-comment period was required..

Either this is true or it is not. Stop the Bush worship and address the facts.

11 posted on 09/07/2001 10:29:48 AM PDT by DAnconia55
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Comment #12 Removed by Moderator

To: DAnconia55
Well, I agree. Which is it? It would make no sense to just announce a program if they didn't have the authority, and I would assume they got a legal opinion.

So, is this judge right, or is the Bush Administration right? Somehow, I just happen to think that there wouldn't have been this finding if Al Gore had proposed the same idea.

13 posted on 09/07/2001 10:42:01 AM PDT by Miss Marple
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To: Support McCain/Nader for Prez, Jim Robinson, Admin Moderator, Sidebar Moderator
JimRob, cleanup in the parking lot. JimRob, cleanup in the parking lot.
14 posted on 09/07/2001 10:50:18 AM PDT by Lazamataz
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To: DAnconia55
Here's some truth for you. 2 Pharmacy Groups Sue to Block Bush's Drug Discount Plan

Through out this piece all I heard was whining dem's and pharm. co. about how they're going to be out of money. I guess the poor sick elerdly can go jump off of cliff.

All I heard though the campaign was how GWB was cold hearted, he didn't care about seniors. Please tell me who in the story cares about the seniors.

So DDAnconia55, the fact is Reuter's is fish wrap, and they're going to spin it in a liberal fashion without giving you any real news.

I would like to discuss this more, but I have jst been told of a tragedy in our family. Take care.

15 posted on 09/07/2001 11:34:08 AM PDT by BigWaveBetty
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