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Here is a status report on major legislation pending before the 110th Congress:
RECENT ACTIONS
2008 Budget Resolution
Status: House and Senate adopted $2.960 trillion budget resolution on May 17, 2007.
Closer Look: President Bush proposed a $2.902 trillion budget for fiscal year 2008, with the goal of
balancing the budget by 2012. This plan would have increased regular 2008 defense funding by more than 10 percent while cutting funding for many domestic programs, including veterans’ medical services, Medicaid, Medicare, housing assistance for the elderly and disabled, and Social Security. Congress’ plan also aims to balance the budget by 2012 and includes increased funding for national defense. However, Congress rejected the president’s proposed domestic cuts and instead added $21 billion for domestic discretionary spending, including 18.3 percent more funds for veterans’ health care, an affordable housing initiative, increased funding for the Low-Income Home Energy Assistance Program, and a reserve fund for to-be-determined Medicare reforms. The plan also allows Congress to expand health insurance coverage for uninsured children.
AARP Position: no position
Lobbying Reforms
Status: S. 1 passed in the Senate on Jan. 18, 2007; H.R. 2316 passed in the House on May 24.
Closer Look: Although the House and Senate bills differ in particulars, both aim to reform the relationship between lobbyists and members of Congress, calling for more rigorous enforcement of lobbying laws and disclosure regulations and aiming to keep favors, bribes and secrecy out of the legislative process. Both bills lay out guidelines for dealing with members who have spouse or family member lobbyists, and both require federal lobbyists to file quarterly and electronic reports. The senate bill would also extend the time period members must wait after leaving office before accepting a lobbying contract, and would deny floor privileges, gym usage and member parking to former Senators and other officials who become registered lobbyists or employees of organizations with a direct stake in current legislation. The differences between the House and Senate bills are still being reconciled.
AARP Position: no position
Minimum Wage/Small-Business Tax Breaks
Status: Passed both the House and the Senate on May 24, 2007; signed by President Bush on May 25.
Closer Look: This legislation increases the federal minimum wage from $5.15 per hour to $7.25 per hour over a period of 2 years. It also provides several small business and work opportunity tax incentives, including expanding the eligibility of disabled veterans for such credits and extending provisions for the Gulf Opportunity Zone tax credit.
AARP Position: no position
Stem Cell Research Act of 2007
Status: Senate approved on April 11, 2007; House approved on June 7; President Bush vetoed on June 20.
Closer Look: The bill would have allowed federal funding for research that uses human embryonic stem cells willingly donated by fertility patients. President Bush’s veto was the third of his presidency—and the second time he has vetoed stem cell research. There were not enough votes in Congress to override the president’s veto.
AARP Position: no position
Secretarial Negotiation of Medicare Drug Prices
Status: Passed the House on Jan. 12, 2007, but was blocked by a procedural vote in the Senate on April 18.
Closer Look: The bill would allow the Secretary of Health and Human Services to negotiate prices of prescription drugs purchased from Medicare. The administration opposed the bill.
AARP Position: AARP strongly supports the bill, and intends to continue to push for this legislation. “Allowing Medicare to negotiate for lower drug prices is common sense, and could have led to more affordable drugs for Medicare beneficiaries and lower costs for all taxpayers,” said David Sloane, AARP director of government relations.
ACTIVE ISSUES
2008 Defense Authorization
Status: Passed in the House on May 17, 2007; awaiting floor action in the Senate.
Closer Look: This authorizes Department of Defense spending for 2008. The House version includes an additional $141 billion set aside for the Iraq war. The Senate version mandates the withdrawal of troops from Iraq within 120 days of passage and blocks spending on a military presence in Iraq.
AARP Position: no position
Prescription Drug Importation/FDA Regulation Bills
Status: The Senate passed May 9 and the House passed July 11 a bill that reauthorizes through 2012 the Prescription Drug User Fee Act, which would have expired on Sept. 30, 2007.
Closer Look: These bills increase FDA scrutiny over drug safety by requiring computerized data analysis, authorizing new fines, and providing drug company funds to finance the FDA drug approval process. The Senate bill included an amendment to allow drug importation from industrialized countries, including Canada, then added a provision that prescriptions be certified by HHS as safe. The provision effectively negates the drug importation amendment, since the last three secretaries of HHS have said it is impossible to certify the drugs as absolutely safe. The Senate and House both killed proposed restrictions on direct-to-consumer advertising, bowing to pressure from media and drug companies. The legislation does allow the FDA to fine pharmaceutical companies for false or misleading advertisements, and renews programs to let the FDA charge fees to drug companies, require drug studies and order label changes. The Senate and House must now reconcile their similar but separate bills, and have the joint bill to President Bush by Sept. 30, when the current FDA user-fee act expires.
AARP Position: AARP strongly supports the importation of safe and legal prescription drugs. The high costs of prescription drugs are especially harmful to older Americans, who use prescription drugs more than any other market segment. Safe and legal importation would help millions of people gain access to more affordable prescription drugs, while encouraging competition that could help drive down drug prices for all Americans, not just those on Medicare.
Immigration Reform Bills
Status: The Senate introduced in May an immigration bill that would strengthen border security, establish a guest-worker program, provide illegal immigrants with a path to citizenship and declare English the country’s national language. The bill was pulled from the floor on June 7, 2007, and again on June 27, when a motion to limit debate was rejected. The House does not expect to consider the bill.
AARP Position: no position
Biologic Medicines
Status: In June, the Senate Committee on Health, Education, Labor and Pensions approved a bill allowing the FDA to approve generic versions of biologic drugs. Similar legislation is making its way through the House.
Closer Look: On June 27, 2007, the Senate Committee on Health, Education, Labor and Pensions unanimously approved the Biologics Price Competition and Innovation Act, which would allow the FDA to approve generic versions of biological drugs. The House Subcommittee on Health, Education, Labor and Pensions is considering two bills, the Access to Life-Saving Medicine Act and the Patient Protection and Innovative Biologic Medicines Act, which would allow generic biological drugs but would establish different approval processes. Biologics—drugs derived from living cells—are used to treat many serious illnesses such as cancer, multiple sclerosis, anemia and arthritis.
AARP Position: AARP supports legislation that would allow the FDA to approve generic versions of biologic drugs. Allowing the FDA to approve generic versions could help lower the high costs of these drugs and save consumers, employers and the government money.
Health Information Technology & Incentive Acts
Status: Similar bills are before committees in both houses.
Closer Look: Both bills would create a national coordinator of health information technology position; authorize grants to hospitals, nursing facilities, health centers and physicians for the adoption of updated health IT systems; and allow providers to deduct health IT investments from federal taxes. The Senate bill would also require patient notification if personal records or information are breached. The House bill would provide loans and additional Medicare payments to medical practices with 10 or fewer employees.
AARP Position: Updating health IT can improve quality of care by providing doctors and clinicians with information that helps reduce errors and providing patients with information that can help them better manage their own care. But the potential for privacy violations posed by health IT is a real concern. AARP urges Congress to enact privacy protections so people can benefit from health IT while remaining confident that sensitive personal health information is not compromised. Patients should be able to control and track who sees their health records and be notified (and have clear remedies) if privacy is breached.
State Children’s Health Insurance Program
Status: The Senate and House are considering separate legislation.
Closer Look: The State Children’s Health Insurance Program (SCHIP) provides federal funds for states to implement and run health insurance programs for uninsured, low-income children. SCHIP, founded in 1997, was funded through 2007 and must now be reauthorized by Congress to continue receiving federal funding. The Senate Finance Committee would finance a $35 billion expansion for the program by raising cigarette taxes 61 cents per pack. The House has proposed a $50 billion expansion, which would rely on a 45-cent federal tax increase per pack of cigarettes along with cuts to insurance plans participating in Medicare Advantage. The White House, however, only recommends a $5 billion expansion, and President Bush has indicated that he would veto these bills.
AARP Position: AARP urges Congress to reauthorize and strengthen SCHIP. AARP believes the SCHIP program is a vital investment in the future health and economic security of our country. Quality, affordable health care for all Americans begins with covering children, and the SCHIP program spans generational divides and helps build a healthier future for all Americans.
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