Medicare, Surveillance Bills Delayed In Senate Until After Fourth Of July Recess

Washington, D.C. (AHN) - The Senate failed on Thursday to complete work on legislation preventing a pay cut to doctors and giving immunity to telecoms companies, despite efforts from both Democrats and Republicans. The chamber convenes on Friday for its last day of session before the Fourth of July recess but no votes are expected to be held.

Senators had hoped to pass a bill preventing a cut in Medicare payments to doctors on Thursday with a cloture vote, but they came up two votes short, 58-40, of the votes required. Majority Leader Harry Reid (D-NV) had changed his vote to "no" so a lawmakers could take up the bill again after the recess.

The $20 billion measure aims to block a 10.6% pay cut to physicians scheduled to begin on July 1, and replace this with a 1.1% pay increase. Republicans are pushing for a measure that would similarly prevent the cut but would not decrease funding for private health insurers who are part of the Medicare Advantage program. The rival bill is sponsored by Chuck Grassley (R-IA), a ranking Republican member of the Finance Committee.

"The doctors are going to survive with a 10 percent pay cut, but they're going to drop out of the system," Reid told the Congressional Quarterly after the vote.

"My side has been willing to negotiate. We tried to find a way to solve the problems. Apparently the majority isn't interested,"Minority Leader Mitch McConnell (R-KY) is quoted by The Hill as saying.

The controversial bill giving retroactive immunity to telecommunications companies that participated in the government's anti-terrorism wiretapping program will also be taken up by Senators after their week-long break. The measure updates the 1978 Foreign Intelligence Surveillance Act (FISA), which provides for the cases when federal agents can obtain court permission and tap phone and computer lines in the U.S.

Democrats led by Sen. Russ Feingold (D-WI) want more time to debate the immunity provision of the bill. The House passed its version of the legislation exactly a week ago, after a year of contentious negotiations. The compromise bill reached by congressmen gives the federal courts the power to decide whether case against a telecommunications company should be dismissed.

President George Bush rebuked lawmakers on Thursday for failing to act on the bills before the recess.

"Democratic leaders in Congress have scheduled another recess. Americans are concerned that Congress may leave town with a lot of important business that hasn't been completed," the President said from the White House, according to an official transcript.

"Before they leave, Congress needs to give our intelligence professionals the tools they need to act quickly and effectively to monitor foreign terrorist communications so we can stop any new attack," he added. "The House passed a good, very good bipartisan bill, and the Senate needs to act.... when they get off their recess, the Democratic Congress needs to act on critical issues that they've failed to address."

The Senate begins its Fourth of July recess on June 28. It returns to session July 7.