What's Next: Will Congress Deliver?

By: Elaine S. Povich and Marie Cocco; Source: AARP Bulletin Date Posted: 2006-12-01 11:53:00-05:00

When Americans look to the power centers in the new Congress, they will see familiar faces: Dingell, Kennedy, Waxman, Rangel.

Long the champions of federal health care programs and of older Americans, these four titans are poised to address the soaring cost of health care—as well as other issues important to 50-plus voters—early and often.

Out of power for 12 years, the Democrats have a huge, dusty stack of deferred initiatives, only some of which can be attained even with their majorities in the House and Senate. President Bush still has a veto pen, which Democratic margins alone cannot overcome.

It was dissatisfaction with Iraq, the economy and Washington corruption that handed Congress to the Democrats. But many of the priorities asserted by designated leaders House Speaker Nancy Pelosi of California and Senate Majority Leader Harry Reid of Nevada—Medicare, pensions, the minimum wage, health care and the cost of education—have a direct impact on older Americans.

As it evolves over the next month, the agenda articulated by the new Democratic leadership will test the pledge of Pelosi, Reid and Bush to seek a cooperative path. It will test the Democratic leaders' skill at holding their fragmented majorities together, and it will test Pelosi's promise to lead from the center.

Social Security may be an early indicator, especially if Bush tempers his effort to establish private accounts. In articulating the Democratic position, Pelosi said, "Social Security is our commitment to the dignity and the retirement security of all Americans. We oppose any effort to privatize Social Security and will stop any plan that cuts benefits and puts America deeper in debt." But an immediate fix to the system's long-term solvency is not in the offing either.

The Iraq war will undoubtedly consume much of the congressional agenda in the near future—exit polls showed that 56 percent of all voters (and 85 percent of Democrats) disapproved of the war in Iraq. But 51 percent of those polled also considered the economy "not good" or "poor," and private polling indicates that retirement security issues are particularly important to boomers and women voters.

"Although most voters named Iraq and congressional scandals as important, our polling showed that health care concerns and Social Security were the number two and three issues in importance for boomers and their parents," says John Rother, policy director for AARP. Even younger voters far from retirement say they're concerned about retirement and health insurance.

That's where John Dingell, D-Mich.—at 80 the longest-serving member of the House, and the incoming Energy and Commerce Committee chairman—and the other senior leaders are so important. While he still has no chance of enacting a national health care system—a bill he ritualistically introduces in each session as a tribute to his father—that issue has moved high on the congressional agenda.

Incoming chairman of the House Government Reform Committee Henry Waxman of California wants to end penalties for those who sign up late for Medicare's Part D. And Charles Rangel, D-N.Y., at the helm of the powerful House Ways and Means Committee, has his sights set on speeding up claims for Social Security disability benefits.

In the Senate, Edward M. Kennedy of Massachusetts returns as chair of the Health, Education, Labor and Pensions Committee and vows to help the nation's 46 million uninsured. "We're ready to fight for affordable health care for all Americans," the senator said in a post-election statement.

Health care is just one challenge Democrats face. Pelosi says some issues will be tackled in the first "100 hours" of the new Congress that begins Jan. 3. Others will take more time. In interviews with the AARP Bulletin, the new Democratic leaders described what they see as legislative priorities on issues affecting older Americans:

Medicare

  • Negotiating drug prices. Changing the drug benefit so that the government can negotiate discounts directly with drugmakers is a top priority. Backers say it could save more than $60 billion in copayments and deductibles. "I don't believe we'll get much controversy from the minority on it," Rangel says. Another anticipated initiative is elimination of what government studies show are significant overpayments to Medicare managed care plans.
  • Filling the "doughnut hole." Pelosi predicts that if drug prices continue to rise, more Medicare beneficiaries will fall into the coverage gap, where enrollees must pay 100 percent of their prescription drug costs. She pledges to tackle the problem, saying that to do nothing would ultimately doom the Medicare drug program. Pete Stark of California, who will chair the House Ways and Means health subcommittee, agrees. "It [the coverage gap] shouldn't be there. It was designed to save [the program] money," he says. "People who need drug therapy can't afford the couple thousand bucks out of pocket. I'd rather see [the gap] evened out or have a higher deductible or something."
  • Assuring coverage. Dingell plans to push for speedy passage of the Medicare Prescription Drug Emergency Guarantee Act, which is meant to address the confusion that marred the start of Part D coverage and left many beneficiaries—particularly those who previously had coverage under state-run Medicaid programs—without medicine for days. The bill would require drug plans to fill a prescription for up to 60 days when a pharmacist is unable to confirm a patient's enrollment in a plan or when the beneficiary discovers too late that certain drugs aren't covered. And Waxman is calling for an end to the penalties for those who failed to sign up for the drug program prior to the May 15, 2006, deadline.

Saving for retirement

With millions of boomers nearing retirement age, pensions are the top priority for incoming Senate Finance Committee Chairman Max Baucus of Montana. "The next step in encouraging retirement savings is to make payroll-deduction savings available to more workers," he says. One approach he has pushed is allowing payroll deductions for IRAs. And George Miller of California, the presumptive chair of the House Education and the Workforce Committee, believes that with traditional pension coverage eroding rapidly, Congress must undertake a far-reaching discussion about retirement security, which, he says, didn't occur in last session's consideration of the Pension Protection Act. "I think when we did the pension bill we didn't ask the larger question about retirement security in this country," Miller says. But for now, small technical fixes could be made in the act, such as toughening rules so it's harder for businesses to use bankruptcy to shed pension obligations.

Stem cell research

Democrats in Congress are certain to push for lifting federal restrictions on embryonic stem cell research, despite the threat of a presidential veto. Pelosi pegs the issue to hope and obligation. "It is our duty here in Congress to bring hope to the sick and the disabled, not to bind the hands of those who can bring them hope," she says. "Stem cell research will enable science to live up to its potential to answer the prayers of American families."

Guns and butter

Incoming House Appropriations Committee Chairman David Obey of Wisconsin, while mindful of the fiscal responsibilities of the committee, seems ready to act on Democratic priorities that include increasing the minimum wage and energy assistance for low-income Americans and expanding education loans and job training programs. "We will support effective homeland security and a strong military to keep the public safe today," he says, "and ensure our nation's future success by making the right investments in areas like education, job training and competitiveness, energy research, development and conservation and scientific research."

Affordable housing

Housing is item number one on his agenda, says Massachusetts' Barney Frank, who will chair the House Committee on Financial Services. He and Rangel will work together to make the low-income housing tax credit work better in high-cost areas by integrating the credit with other low-income housing programs. Frank says he also plans to reinstate some money cut from the federal housing program for the elderly and for the disabled.

While the majority of Democrats are eager to get going on their to-do list, the rank and file in their caucus include liberals, conservatives and moderates who don't always agree. That's where the Republicans come in.

"We need the Republicans to get anything done," Stark says. "We've always needed them; we're too diverse a caucus."

Elaine S. Povich and Marie Cocco cover congressional politics.

Additional Related Links

Eight Things to Know About 50+ Voters (December 2006)

Election 2006: The Road Ahead (November 2006)

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