http://www.bloomberg.com/apps/news?pid=washingtonstory&sid=IPBA7607SXKXBush Administration Threatens Veto on Senate Medicare Drug Cuts
By Laura Litvan
Nov. 2 (Bloomberg) -- U.S. President George W. Bush will be urged by his aides to veto a $39 billion spending-cut measure in the U.S. Senate if a final version includes key changes in the Medicare prescription drug law, an administration statement said.
"If a final bill is presented to the president that limits the choices of seniors, takes away their prescription drug coverage, or cuts the stabilization fund to increase Medicare spending, the president's senior advisers will recommend that he veto the bill," said a statement from the White House Office of Management and Budget.
The administration objects in particular to a provision ending plans for a fund that gives preferred providers benefits for offering drug coverage in underserved areas, saving $5.4 billion over five years. The fund was eliminated as part of a Senate effort to achieve $10 billion in Medicare and Medicaid savings. <snip>
"It doesn't seem the administration's statement will hurt the bill's chances in the Senate," Gerber said in an e-mail. "We haven't seen enormous sentiment in the Senate for keeping the Medicare stabilization fund." <snip>