May
2001
Volume 2 Issue 7
Office
of Business Development and Managed Care Operations
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What's New...
Updates from...
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With Democrats poised to
take control of the US Senate after Vermont Senator James Jeffords announced
his anticipated defection from the Republican Party, investors and health
industry analysts responded to the news on Thursday with concern that the
shift in power could spell trouble for drug companies and health maintenance
organizations that had enjoyed a brief industry-friendly environment in
Congress and the White House since President Bush took office in January.
With a slim one-vote majority in the Senate, Sen. Edward Kennedy, the ranking
Democrat on the Senate health, education and labor committee, will likely
take its helm and allow greater criticism of the industry. Other items on the
Bush agenda, including legislation on Medicare drug benefits and a White
House-backed patients' bill of rights will likely undergo a change in
complexion. The nations largest drugmakers, while supporting a Medicare
benefit, want it designed so that the private sector - not the government -
determines the price of prescription medications. Jeffords' departure also
increases the possibility that the McCain-Kennedy version of a patient's bill
of rights will be brought up for a vote on the Senate floor. That bill
includes expanded rights of patients to sue HMOs and permits multimillion-dollar
jury awards. However, the bill would still face a stiff fight from
Republicans who could filibuster. HMO stocks were mostly indifferent to the
Jeffords' news, though drug companies traded somewhat lower in mid-day
activity on on Thursday. Mary Gibson, The Editor
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This bulletin is designed
to facilitate communication among those involved in the administration and
delivery of patient care services at UICMC. We welcome your comments
and suggestions. Editor Mary Gibson Director Roger Carlson |