Voinovich, DeWine, and Hobson are Triple Threat to Taxpayers

(Washington, D.C.)- Citizens Against Government Waste (CAGW) today named three Ohio Republicans, Sen. George Voinovich, Sen. Mike DeWine, and Rep. David L. Hobson its November Porkers of the Month for threatening to oppose H.R. 1, the Medicare prescription drug bill, if it requires competitive bidding for durable medical equipment like canes and walkers.  Medicare currently pays a fixed rate to select companies for such medical equipment.  Included in the House-passed version, competitive bidding is one of the bill’s only redeeming features because it will help keep down the skyrocketing costs of the program as it adds a prescription drug benefit.  Ohio is the home state of Invacare, the world’s largest producer of home health care products and Medicare accounts for 40 percent of the company’s business.

The Ohio Trio, along with Sen. Mary Landrieu (D-La., and CAGW co-Porker of the Month in September), wrote letters to conference Chairman Rep. Bill Thomas (R-Calif.) and Vice Chairman Sen. Charles E. Grassley (R-Iowa) opposing the competitive model, saying it would drive small companies out of business and discourage innovation.  In fact, the complete opposite is true.  Competition leads to better products and more options for health care beneficiaries. 

The proposal for competitive bidding is one of the few cost-containment provisions in a bill that, if passed, will bestow a heavy burden on present and future generations.  After only a week of additional analysis, the Congressional Budget Office revised its cost prediction for the prescription drug program from $400 billion to $430 billion.  With the federal government staring down a projected $480 billion deficit in fiscal 2004, the prescription drug benefit will likely be financed by more borrowing.  Furthermore, the baby boomers’ retirement will double the size of the Medicare population.  Medicare needs all the savings it can get.

Chairman Thomas is right to make competition a priority in conference negotiations between the House and Senate passed versions of the Medicare reform bill.  In 2002, Medicare spent $6.5 billion on durable medical equipment-an increase of 59 percent in the past five years.  The Senate bill would freeze payments for medical equipment over the next decade.  Price ceilings stifle innovation and almost always lead to shortages.  Seniors would have only one option for medical equipment and taxpayers would lose the benefits of market-driven costs.  The biggest benefactors would be companies like Invacare-a company hoping to coast on Medicare payments without the inconvenience of competing for taxpayers’ money.  The Ohio Trio is placing hometown special interests before the interests of the nation’s taxpayers and millions of Medicare beneficiaries. 

For threatening to rip out one of the few cost-saving provisions in the $430 billion Medicare prescription drug bill, Citizens Against Government Waste awards Sen. Voinovich, Sen. DeWine, and Rep. Hobson its November Porkers of the Month. 

Citizens Against Government Waste is the nation’s largest nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government.