Seniors at center of health-care debate

WASHINGTON (AP) — For the moment, the health-care fight is all about older folks.

Democrats agonized Thursday over how to soothe worried seniors but decided one idea was too risky because it could antagonize the powerful drug industry, whose support is critically needed for President Barack Obama’s broader overhaul.

The Senate Finance Committee defeated a Democratic amendment that would have gradually closed the coverage gap in the Medicare drug benefit at the expense of drug makers. Nonetheless, another proposal to shield seniors in Medicare private-insurance plans from benefit cuts remained alive.

Thanks to Medicare, virtually all seniors have reliable insurance coverage — and most are happy with it. But with Democrats planning to finance an overhaul by cutting $500 billion from Medicare and Medicaid, many seniors are worried their benefits will be devalued. Republicans have seized on the issue, forcing Democrats to scramble.

In its third day of deliberations, the committee voted 13-10 to reject an amendment by Sen. Bill Nelson, D-Fla., that required drug makers to rebate $106 billion over 10 years to the government for medications used by low-income Medicare beneficiaries.

Three Democrats, Bob Menendez of New Jersey, Tom Carper of Delaware and Chairman Max Baucus of Montana, joined Republicans in voting against the proposal. Menendez and Carper warned that the amendment could undermine support for Obama’s push to cover the uninsured.

The drug industry signed on early to Obama’s goal, pledging $80 billion in savings over 10 years, including a 50 percent discount for seniors who fall into the “doughnut hole” coverage gap. Squeezing the drug companies for even more proved to be too threatening to the fragile political coalition Obama is trying to hold together.

Meanwhile, another Nelson amendment would preserve extra benefits such as eyeglasses and dental care for many seniors currently enrolled in Medicare private-insurance plans. The private plans now get a bonus that Democrats want to cut.

The Finance Committee is the last of five congressional panels to debate health-care legislation that is atop Obama’s domestic agenda.

Meanwhile, a government option continues to enjoy support from about two-thirds of Americans, according to a CBS News/New York Times poll released Thursday. The survey also found that Obama’s health-care publicity blitz has failed to dispel questions about his plan, but nonetheless Americans by 52 percent to 27 percent say he has better ideas for revamping health care than Republicans do.