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House probe medciare bribery allegation Original Source Link: (May no longer be active)    http://www.alertnet.org/thenews/newsdesk/N17152042.htm http://www.alertnet.org/thenews/newsdesk/N17152042.htm 17 Mar 2004 23:44:21 GMT U.S. House to probe Medicare bribery allegation (Updates throughout) By Joanne Kenen WASHINGTON, March 17 (Reuters) - The U.S. House of Representatives ethics committee on Wednesday authorized a probe into bribery allegations linked to House passage of the Medicare drug benefit bill, the second investigation related to the landmark Medicare reform law announced in as many days. The House ethics panel in a statement said a subcommittee would "conduct a full and complete inquiry" into bribery allegations that Michigan Republican Rep. Nick Smith made and then withdrew. Smith, who voted against the bill in November, said soon after that "bribes and special deals were offered to convince members to vote yes." Smith, who is retiring, at the time cited offers of "extensive financial campaign support and endorsements" for his son, Brad, who is running to succeed him. He later backed off the bribery claim but the ethics panel said it decided to look into the matter "on its own initiative." Smith in a brief statement promised full cooperation. In another sign of the still-high emotions and politics surrounding the Medicare law, U.S. Health and Human Services Secretary Tommy Thompson on Tuesday said he was requesting a probe by his department's inspector general into allegations that a top government expert on Medicare costs was threatened with dismissal if he revealed that his estimate of the Medicare bill cost was one-third higher than the $400 billion estimated by the nonpartisan Congressional Budget Office. White House spokesman Scott McClellan said on Wednesday that the allegations were "serious" and that Thompson had taken an "appropriate step." Several Democrats have also requested an investigation into whether "video news releases" touting the Medicare law violated restrictions on using taxpayer funds for political propaganda. The Medicare bill passed narrowly in the House, with conservatives balking at the $400 billion CBO price tag. Some lawmakers argue that the bill would not have passed if conservatives knew that administration experts put the cost as high as $534 billion. Democrats have tried to draw attention to several aspects of the Medicare vote -- the Smith allegations, the flap over the different cost estimates, and the extraordinary three-hour vote on the House floor. The vote was closed as soon as a few Republicans switched their votes, providing the victory. Some Democratic lawmakers who had demanded an investigation into the alleged firing threat also praised Thompson's decision to seek a probe, while others pressed Congress to look into the matter as well. Criticism erupted over the past few days after the government's top expert on Medicare costs, Richard Foster, told major newspapers he was threatened with firing last June if he told lawmakers about cost estimates that could have doomed the measure as too expensive. Foster did not reply to a phone message or e-mail to his office on Wednesday. House Majority Leader Tom DeLay, a Texas Republican, on Wednesday dismissed both sets of numbers. "The numbers are never right. The CBO numbers are never right. The OMB numbers are never right," DeLay said, referring to the Office of Management and Budget. During congressional debate on the Medicare bill in November, administration officials embraced an estimate by the CBO that it would cost $395 billion in the first 10 years. Five months earlier, Foster had estimated a similar plan would cost $551 billion over 10 years, according to documents congressional Democrats made available to reporters. (Additional reporting by Adam Entous and Susan Cornwell)

6 democratic candidates attack medicare measure { November 19 2003 } Aarp members burn cards Aarp spends 7m ad campaign supporting gop bill { November 19 2003 } Candidates take on aarp over drug bill Congressman bribed to pass medicare { November 27 2003 } Democrats threaten sue over medicare cost estimates Drug makers protect their turf { November 21 2003 } Drug plan faces enrollment challenge Drug prices for elderly climb 50 percent { July 1 2004 } FDA and states at odds over drugs { February 22 2004 } House probe medciare bribery allegation Medicare administrator withheld cost estimates for congress { September 8 2004 } Medicare costs kept secret Medicare drug benefit will cost more than reported { February 9 2005 } Medicare drug bill could be tough sell { November 17 2003 } Medicare drug cards produce confusion { July 29 2004 } Medicare drug cost estimate increases { January 30 2004 } Medicare reform bill is a disaser { November 28 2003 } Medicare secrecy inquiry is silenced { April 2 2004 } Medicare wont cover cancer drug costs { September 8 2004 } Medicares hidden bonanza { March 4 2004 } New drug benefits too complicated for seniors Nine dems back medicare bill Offered money to change vote { December 8 2003 } Some experts foresee revolt by elderly { November 26 2003 } Top democrats want us house probe on medicare vote US offers senior drug cards amid criticism { May 3 2004 } Files Listed: 27

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