GOP seeks to loosen deficit-control bill

[Judi Lynn]

Posted on Tue, Nov. 01, 2005

GOP seeks to loosen deficit-control bill

ANDREW TAYLOR
Associated Press

WASHINGTON - The White House on Tuesday threatened to veto a sweeping Senate budget plan unless lawmakers restore subsidies for some health insurers offering Medicare prescription drug coverage.

The administration's stand takes aim at $5.4 billion in savings from killing a White House-backed subsidy fund. The fund was designed two years ago to entice certain regional health care providers to offer prescription coverage under the landmark Medicare drug law taking effect Jan. 1.

The White House argues that without the so-called stabilization fund, seniors' drug plan choices might be limited. Senate Finance Committee Chairman Charles Grassley, R-Iowa, who proposes to "zero out" the subsidy fund, counters that regional health coverage providers are in fact participating in the Medicare drug program without subsidies.

An official White House statement threatened a veto if the final version of the bill if it "limits the choices of seniors, takes away their prescription drug coverage, or cuts the stabilization fund to increase Medicare spending."
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http://www.sunherald.com/mld/sunherald/news/breaking_news/13055025.htm