Wednesday, February 09, 2005

Oh Yeah, they should be trusted with Social Security...

The Bush White House, always managing a newer more expensive boondoggle. Congratulations on being "bitches" conservative Republicans.

WASHINGTON, Feb. 8 - The Bush administration offered a new estimate of the cost of the Medicare drug benefit on Tuesday, saying it would cost $720 billion in the next 10 years.

That is much more than the $400 billion Congress assumed when it passed legislation creating the benefit in late 2003.

But administration officials said the numbers were not comparable. The original estimate was for the years 2004 to 2013. The new estimate covers the period from 2006, when the drug benefit becomes available, to 2015.

The higher figure, which provides the first glimpse of the true cost of the drug benefit, could touch off a political uproar in Congress, where conservative Republicans were already expressing alarm about the costs of Medicare, including the drug benefit.

In a recent interview, the new chairman of the Senate Budget Committee, Judd Gregg, Republican of New Hampshire, said he wanted to "put the brakes on the growth of entitlements" and take a close look at the new Medicare law.

"Since it was sold as a $400 billion program, that's what we should keep it at," Mr. Gregg said.

Representative Rahm Emanuel, Democrat of Illinois, asked about the issue on Tuesday when Treasury Secretary John W. Snow was testifying before the Ways and Means Committee. Mr. Snow said he did not have detailed figures at hand.

Dr. Mark B. McClellan, administrator of the Centers for Medicare and Medicaid Services, said later that the drug benefit would cost $720 billion from 2006 to 2015.

Passage of the Medicare bill was a major political achievement for President Bush and the Republican leaders of Congress. It squeaked through the House by a vote of 220 to 215, and it would probably not have been approved in its current form if lawmakers had thought the cost would exceed a half-trillion dollars.

Mr. Emanuel said: "The new cost estimate destroys the credibility of the Bush administration. Officials were so far off in estimating the cost of the Medicare law. Why should we believe what they say about the financial problems of Social Security?"

Representative Pete Stark of California, the senior Democrat on the Ways and Means Subcommittee on Health, said: "I told you so. We can't trust numbers provided by administration officials. They'll say anything to get a bill passed. And if the new drug benefit costs more, the extra money goes to their friends in the pharmaceutical industry, not to senior citizens."

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