Health care overhaul could raise Medicare Rx costs

The amendment would allow the new Medicare commission to recommend "reductions in federal premium subsidies" to the private insurance plans that deliver the prescription drug benefit. Grassley's office said the "premium subsidies" are taxpayers' share of the cost of the prescription plan. If those are reduced, the plans will make up the difference by raising premiums for seniors.

As originally envisioned by Finance Committee Chairman Max Baucus, D-Mont., the Medicare commission would have been barred from recommending any changes to Medicare benefits or cost-sharing.

A Baucus spokesman said the bill would protect seniors and strengthen Medicare. "The Medicare commission will look broadly at Medicare to find savings and efficiencies in the Medicare program, which will only help seniors," said the spokesman, Scott Mulhauser.

Grassley said the Democratic amendment was geared to compensate for a deal that would exempt hospitals from the commission's cost cutting scalpel.

The hospitals have already agreed to forego $155 billion in Medicare and Medicaid payments over the next ten years to help pay for the health care overhaul.

Foxx announces plans to run for re-election

—Congresswoman Virginia Foxx today announced that she will run for reelection for North Carolina’s Fifth Congressional District. Foxx has represented the Fifth District in Congress since 2005.

“Representing the people of North Carolina’s Fifth District in Congress is a great honor, Foxx said. “During this era of record deficits I promise to continue to hold Washington accountable and rein in its reckless spending and wasting of taxpayers’ hard-earned money.

Foxx is a strong proponent of keeping taxes low and ensuring that the government lives within its means. Last year Foxx opposed the bank bailouts, the auto bailouts and other massive spending programs like the trillion dollar stimulus package. Washington needs a strong dose of North Carolina common sense,” Foxx said. “North Carolinians are looking for someone who will stand up to the big-spending ways of Washington and who will offer solutions that solve problems without growing government and creating debt. As a small-government conservative, I have a proven track record of fighting to preserve freedom and keep big government at bay."

During her third term Foxx successfully shepherded a bill through Congress to improve on-base housing for soldiers in the Army. Her bill to stop the 2008 bank bailout also passed the House last January.

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