House Passes Medicare Drug Bill with HCFA Reforms
On June 28, 2000, the U.S. House of Representatives passed the Medicare Rx Act of 2000 (H.R.4680), by a vote of 217 to 214. The primary and most highly publicized purpose of H.R.4680 is to provide Medicare beneficiaries with outpatient prescription drug coverage through Medicare+Choice plans or through private insurance plans that only cover prescription drugs. Beyond prescription drugs, however, H.R.4680 contains provisions that could have a dramatic effect on the operation of the Medicare program. For instance, the legislation would create a new Medicare Benefits Administration (MBA) within the Department of Health and Human Services (HHS) that would be separate and distinct from the U.S. Health Care Financing Administration (HCFA). HCFA currently has the sole Federal responsibility for the administration of the Medicare and Medicaid programs. Under the bill, the new MBA would be responsible for the entire Medicare managed care (or "Medicare+Choice") program; the new outpatient prescription drug program created by the bill; and various demonstration projects, including programs of all-inclusive care for the elderly (or "PACE" programs), social health maintenance organizations (or "SHMOs"), and the Evercare program. In addition, an Office of Beneficiary Assistance (OBA) would be created within the MBA, taking away from HCFA all responsibility for beneficiary outreach, eligibility, enrollment, grievance, and appeals activities. In addition, the OBA would create a Medicare Ombudsman to help beneficiaries deal with all aspects of the Medicare program. The bill would also create a Medicare Policy Advisory Board within the MBA that would be required to report directly to Congress annually, without Administration input, on the operations of the Medicare+Choice and prescription drug programs and make recommendations for changes. While the MBA would be a part of the U.S. Department of Health and Human Services, it would enjoy some independence. The Administrator and the Deputy Administrator would be appointed by the President, with the advice and consent of the Senate, for fixed, five-year terms that would overlap presidential administrations. In addition to creating the MBA, the bill also contains a number of provisions designed to help expedite reviews of Medicare coverage denials; to clarify when a beneficiary is liable for payment, repayment, and cost-sharing; and to provide enhanced funding for Medicare+Choice plans. President Clinton has vowed to veto H.R.4680 in its present form.