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How Gingrich Helped Medicare Part D Get Passed

Since he rose to the top of the polls, there’s been a lot of chatter about Newt Gingrich’s support for Medicare Part D. Politico’s Jonathan Allen reports on how Gingrich not only supported Part D, but was crucial in persuading Republicans still in office to back the bill:

Newt Gingrich played the role of political godfather in pushing the Medicare prescription drug benefit into law, returning to Capitol Hill in November 2003 to deliver a pivotal speech that turned some conservative skeptics into believers.

Three days before the clock started on what would be an excruciating and historic three-hour floor vote, Republicans huddled in a House office building committee room to hear their former speaker’s vision of a modernized Medicare plan that would offer prescription drugs for seniors while subsidizing Medicare Advantage and introducing health savings accounts aimed at giving conservatives a reason — any reason — to expand the bastion of Lyndon B. Johnson’s Great Society. …

But it was the hard-right element in the Republican Party that Gingrich focused on in his speech that day, arguing that a handful of reform-minded provisions in the bill would create an opportunity to rewrite the whole Medicare program later. Gingrich, by then an elder statesman, turned out to be the ideal cleanup hitter.

“Newt was critical to the passage of Medicare Part D,” recalls John Feehery, who was Speaker Dennis Hastert’s chief spokesman at the time. The speech “was very powerful,” Feehery said.

Gingrich continues to defend Part D now. In a November interview with New Hampshire’s Union Leader, Gingrich said of why he supported it that, “It created health savings accounts and it created Medicare Advantage. … First of all, I think to have Medicare program that says we’ll give you open heart surgery, but not Lipitor, is very destructive. You have to modernize the system.”

New on The Corner. . .


COMMENTS   10

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   12/13/11 09:24

"“It created health savings accounts and it created Medicare Advantage. … First of all, I think to have Medicare program that says we’ll give you open heart surgery, but not Lipitor, is very destructive. You have to modernize the system.”

One the face of it, this statement makes sense to me. Could someone explain to me (I'm not being facetious) why the above statement is viewed by some (many?) as being 'off the mark'?

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   12/13/11 09:45

It makes perfect sense. And, there are probably dozens or perhaps even hundreds of other medications that keep small medical problems from growing into more pronounced problems that require more costly types of intervention.

My two biggest problems with Part D is that we didn't pay for it, and we handcuffed these federal agencies from being able to negotiate the prices of these medications. Sadly, you can lay blame for these two elements largely at the feet of the GOP. Intentional deficit spending of more than $75B annually as well as purposeful government waste, aren't very conservative principles.

Having said that, without Medicare Part D enactment, it's likely that the Democrats would have had their issue to drive a wedge between the GOP and Seniors. Considering that Seniors are the single most reliable GOP demographic, without their overwhelming support, it's also likely Bush doesn't win reelection, and the GOP loses one or both houses of Congress two years earlier. Then, we would have been stuck with something even worse than Part D. The political reality is old people want free stuff; they think they're entitled to it because they've (somehow) already paid for it. Since they're such a well-organized demo, they generally get what they want.

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 Tom
   12/13/11 11:36

Is there any empirical evidence that Medicare Part D has indeed led to lower Medicare costs? I think not, although I am not positive. I do know that preventive medicine while individually beneficially is seldom cost effective. The research on preventive testing and medication is ample and consistent on this fact.

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   12/13/11 11:58

"The research on preventive testing and medication is ample and consistent on this fact."

That's true. But, it's also true that(with Medicare Part D) we're treating hundreds (thousands?) of different diseases that while chronic, may not worsen over time. IOW, the disease may have quality of life implication, those implication - while unpleasant - may not worsen to an extent that will eventually require hospitalization or other more costly intervention. The drugs for those kinds of diseases are plentiful, and they're expensive. Anti-depressants and other psychological medications come to mind immediately. You can live with "restless leg syndrome" without ever being hospitalized for it. So, if Medicare starts paying for your RLS medication, there's no cost-savings upside for Medicare as that medication isn't going to prevent a more costly intervention in the future.

In Newt's example of Lipitor, or other medical management drugs - like blood pressure medications, the preventative effect can be profound. He's right: Lipitor over 25-years is still less expensive than triple-bypass surgery - which may even need to be repeated in 25-years without the cholesterol lowering medication.

It seems to me that while Medicare Part D did have long-term cost-saving potential for Medicare, Congress should have been much more discriminating with respect to the kinds of medication that was covered.

But, as I said, old people love free stuff, and they wanted all their medication covered. As a practical political reality, it was going to happen sooner or later - and by later, I mean a couple years later, not decades later. The AARP isn't the most powerful lobby by accident.

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 Tom
   12/13/11 12:58

"In Newt's example of Lipitor, or other medical management drugs - like blood pressure medications, the preventative effect can be profound. He's right: Lipitor over 25-years is still less expensive than triple-bypass surgery - which may even need to be repeated in 25-years without the cholesterol lowering medication."

The question is not whether in an individual case medication costs that lower the risk, and that is all lipitor does, is less than surgical intervention. It almost always is. The question is whether the cost of treating with medication for a group of people who may or may not eventual need surgical intervention costs less than not treating with medication and dealing with a greater number of surgical interventions.

Lipitor does not eliminate the need for triple bypasses in its patients, it just lowers the risks. Any costs savings are not definite and very likely non-existant. Preventive care has been shown time and time again, with some execptions, to be ineffective as a cost saving device. Such care has major quality of life benefits but it is hard to make the case that it saves money.

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   12/13/11 10:20

Gingrich is a disaster. The last thing the GOP needs is a nominee whose last 12 years have been devoted to lobbying for expansions to Medicare (Part D as noted here, attacking the Ryan Medicare reform plan, etc.), "alternative energy" subsidies, and government subsidies (in the form of cheap loans) for people to buy homes they can't afford.

Three of our biggest problems, and Gingrich has lobbied for them all. You can't make this stuff up.

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   12/13/11 10:50

“Newt was critical to the passage of Medicare Part D,” recalls John Feehery, who was Speaker Dennis Hastert’s chief spokesman at the time."

so based on a Politico article ... Politico ???? with the word of a chief spokesman ... wow, thats solid sourcing ...

National Romney Online

(you forgot the Donate to Romney link yet again ...)

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 Fred
   12/13/11 11:29

Bashing Mr. Gingrich for supporting Part D is just dumb. Unlike most private plans, Medicare lacked substantial outpatient drug coverage prior to Part D. It was still stuck in the 1960s when hospitals were the apex of medical care. This antiquated structure led to absolutely stupid things like paying for hospitalization so people could afford drug treatment. It was high time Medicare moved into the modern era. And unlike the rest of Medicare, Part D was organized to operate without price controls.

The real question is whether Mr. Gingrich is now willing to extend the Part D success to the rest of Medicare and move it towards being a premium subsidy program as Ryan envisions.

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 Tom
   12/13/11 11:43

While there is certainly an argument to be made that providing drug coverage for seniors is a societal good I'd frankly be very interested in seeing any evidence that doing so led to any actual savings, And I'd venture a guess that any actual savings were more than offset by the costs of the program.

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   12/13/11 11:44

Newt's "solutions" are always big government solutions. He paints it with conservative hues and sells it to timid "conservatives" who'd sell their souls to be re-elected. George Bush's and Tom DeLay's reigns had next to nothing to do with being conservative. Of course Romney is a big government kinda guy, too.

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