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Report widens dispute over Medicare data
Former Medicare administrator Thomas Scully broke no law when he directed his chief cost analyst to withhold information from Congress, the Health and Human Services Department's inspector general says.
Members of Congress had sought information from the Bush administration about the cost of the Medicare prescription drug bill.
The finding by the Health and Human Services Department's independent Office of Inspector General, released Tuesday, relies heavily on a fresh opinion by the Bush administration's legal advisers, which concluded that the analyst was not legally independent enough to override the order of his boss.
Critics of that view -- who included Republicans in the House when the Clinton administration was in power -- contend that Congress can legislate wisely only when executive-branch experts share their information and expert opinions, especially about the costs of government programs.
The new report, signed by Acting Principal Deputy Inspector General Dara Corrigan, found that five times between June and October 2003, Scully blocked efforts by his chief actuary, Richard Foster, to comply with congressional Democrats' requests for information on costs of the Medicare drug bill.
Foster's analysis showed that the then-pending bill would cost $500 billion to $600 billion over the first 10 years. That was far more than the $395 billion estimated by the Congressional Budget Office and touted by the White House.
Foster's figures threatened the passage of the White House-backed bill because 13 House Republicans had vowed to vote against it if it cost more than $400 billion. The bill initially passed the House by one vote in June 2003. A House-Senate compromise passed by five votes last November.
In January, the Bush administration acknowledged that the bill probably would cost $534 billion over 10 years, not $395 billion.
The finding that Scully's actions violated no laws contradicts a report in April from the Congressional Research Service. That analysis concluded that Scully's efforts to muzzle and threats to fire Foster probably violated a 1912 statute that says a federal employee's right to communicate with and provide information to Congress "may not be interfered with or impeded."
Lawyers for the General Accounting Office, Congress's watchdog agency, will be the final arbitrators of the conflicting opinions.



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