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Old 17-03-04, 12:22 PM   #4
JackSpratts
 
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Inquiry Ordered on Medicare Official's Charge
Robert Pear and Sheryl Gay Stolberg

Tommy G. Thompson, secretary of health and human services, ordered an internal investigation on Tuesday into accusations that the Bush administration had threatened to fire a top Medicare official if he gave data to Congress showing the high cost of the legislation that created prescription drug benefits for the elderly.

"There seems to be a cloud over this department because of this," Mr. Thompson said. "We have nothing to hide. So I want to make darn sure that everything comes out."

Mr. Thompson commented amid growing concern over statements by the chief actuary of the Medicare program, Richard S. Foster, who says he was told to withhold estimates of the cost of the legislation. Mr. Foster has said Thomas A. Scully, who was administrator of the program, threatened to dismiss him in June if he provided the information to Congress.

On Tuesday, Mr. Thompson told Dara Corrigan, the acting principal deputy inspector general of the department, to investigate.

Democrats have expressed outrage about the actuary's accusations. On Tuesday, two prominent Republican senators, Chuck Hagel of Nebraska and Olympia J. Snowe of Maine, demanded that the administration explain what it knew about the Medicare numbers.

"This is very troubling and disturbing," Ms. Snowe, a strong supporter of the new law, said. "You undermine the credibility and integrity of the legislative process any time you deliberately withhold information from Congress. You hamstring our ability to do the best job we can."

The senior Democrat on the House Ways and Means Committee, Representative Charles B. Rangel of New York, said he and his aides knew in June that Mr. Foster was "under severe pressure" to withhold information from Congress. The Democrats remained silent, Mr. Rangel said, because of fear that Mr. Foster would lose his post.

Mr. Thompson said the inspector general's office would investigate two questions, whether cost estimates were improperly withheld and whether Mr. Scully threatened Mr. Foster.

Mr. Foster conducted many analyses of the Medicare bill, estimating that the drug benefits would cost $500 billion to $600 billion over 10 years. If his figures had been known, some conservative Republicans might not have voted for the bill, and the measure might not have passed in the form that President Bush signed into law on Dec. 8.

Senator Edward M. Kennedy, Democrat of Massachusetts, welcomed the review as a positive step. But he said it would not answer larger questions like, "What did the president know, when did he know it, and why did he and the senior members of his administration continue to claim that the legislation would cost $400 billion when their best estimate was that it would cost much more?"

Mr. Thompson suggested that the tempest over the actuary resulted from election year politics.

"There has been an intentional attempt to politicize this bill from Day I, and to demagogue it," he said.

Representative Nancy L. Johnson, Republican of Connecticut, a co-author of the legislation, said she knew about Mr. Foster's numbers last year. Mrs. Johnson said she thought his assumptions were flawed, so she did not place great reliance on them.

"At the time," she said, "they did not make a ripple."

Representative C. L. Otter, the Idaho Republican who voted for the bill after a last-minute appeal from Mr. Bush, said House Republican leaders had assured him in recent days that the $400 billion estimate remained valid.

Mr. Thompson said he never told Mr. Scully to withhold information from Congress. Indeed, he said, he assumed that the Medicare chief was sharing cost estimates with a small group of lawmakers who were negotiating the final legislation.

"Tom Scully was running this," Mr. Thompson said.

But Representative Pete Stark, Democrat of California, said Mr. Scully, who left the government in December, was a convenient scapegoat and "perfect fall guy."

Senator Hagel said he was very concerned about the possibility that cost figures had been intentionally suppressed.

Representative Gil Gutknecht, Republican of Minnesota, said the outcome of the Medicare debate would probably have been different had Congress known the actuary's estimates.

"They had to keep the vote open three hours to get this bill passed," Mr. Gutknecht said. "If members had known that there were already in hand estimates that were significantly higher than the one that was advertised, I think it would have been even harder to get the votes."

Representative Cal Dooley, the California Democrat who switched his vote to yes from no during the final roll call, said, "If a number of conservative Republicans had known that the bill had a $530 billion price tag, they would not have voted for it, and the bill would have failed."

http://www.nytimes.com/2004/03/17/politics/17HEAL.html


For Scooby - http://www.usatoday.com/news/washing...re-probe_x.htm

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