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Follow the Money: Why the Democrats Won't Kill Private Medicare Plans

 
• By Cole Werble

Democrats are taking over Congress with a strong distaste for high CMS payments to PDP and MA plans. Big cuts to those payments would be really bad news to the system, but the cuts are unlikely. The program has buitlt a stable base during its first year -- enough to withstand a big blow of rhetorical threats.

The 2006 elections threaten to shake the philosophical foundations of the Medicare drug benefit, but the key financial pillars holding up the program appear likely to ride out the tremors without significant damage.

Big Pharma is understandably focused on the Democratic proposal to allow the Medicare program to negotiate pharmaceutical pricesdirectly

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