WASHINGTON – U.S. Rep. Benjamin L. Cardin today urged Congressional conferees working on a Medicare prescription drug legislation to drop provisions that would eliminate civil service protections of federal employees administering the drug benefit. Thirty House members joined the Congressman in signing the letter to the conferees.

The Medicare Prescription Drug and Modernization Act (HR 1) would waive several federal employee civil service rights by creating a new entity, the Medicare Benefits Administration (MBA), to administer the Medicare drug benefit and the bill’s privatization provisions. The MBA administrator would be granted broad authority in hiring and pay of the new agency’s employees. The MBA would draw many of its staff from the Centers for Medicare and Medicaid Services (CMS), the agency that currently administers all Medicare and Medicaid benefits, thereby eliminating many of those current employees’ rights.

"The House bill sets Medicare on a dangerous path toward privatization. It would create a new, separate entity, outside the CMS to administer the drug benefit and establish ‘competition’ between fee-for-service Medicare and private insurers," said Rep. Cardin. The Congressman, a member of the Ways and Means Committee, voted against HR 1, which passed the House by a one-vote margin on June 24.

"As a result of the provisions in the bill, the MBA administrator would be able to waive civil service protections, including those relating to hiring and pay. All employees of this new agency would be covered by the personnel policies of a political appointee, rather than by federal law."

Rep. Cardin stressed that the nation’s civil servants are the backbone of the federal government. "Unfortunately, this Administration seems intent on eliminating the important protections that have served to maintain the quality of federal services and quality of life for federal employees, retirees and their families."

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NOTE: Copy of letter to conferees follows

July 24, 2003

The Honorable William M. Thomas
Chairman
Committee on Ways and Means
1102 Longworth House Office Building
Washington, DC 20515

The Honorable Charles B. Rangel
Ranking Member
Committee on Ways and Means
1106 Longworth House Office Building
Washington, DC 20515

Dear Conferees:

We are writing today to express our deep concerns regarding Section 801 of HR 1, the Medicare Prescription Drug and Modernization Act of 2003. This provision, which is one element of the Medicare privatization effort that we oppose, would decimate current protections for employees who would administer the new Medicare outpatient drug benefit. We urge you to exclude Section 801 from the final version of the legislation.

Section 801 represents the latest attempt by this Administration to strip the rights and benefits of our nation’s dedicated federal workforce. Language in this section would permit the waiving of federal employees’ civil service rights by creating a separate entity called the Medicare Benefits Administration (MBA). The MBA head would be granted broad authority with regard to the hiring and pay of its employees.

This is of great concern to Federal employee unions who play a significant role in protecting the rights of Federal employees, including the pay, benefits and employment rights provided by civil service law. To date, the Administration has offered no justification for the creation of this new entity.

Federal employees have effectively served Medicare beneficiaries and providers for years at the Health Care Financing Administration (HCFA), and since 2001 at the newly-created Centers for Medicare and Medicaid Services (CMS). More than 70 million Americans rely on the experienced professionals at CMS to make them aware of the services for which they are eligible, to ensure that those services meet quality standards, and to guarantee that payments for those services are made promptly and accurately. These dedicated employees have proven their commitment to the success of the Medicare program, and employees who would be responsible for implementing new programs in Medicare deserve the same protections that have covered HCFA and CMS workers for so long.

We urge you to make certain that the final legislation reflects Congress’ long-standing commitment to federal employees and the essential role they play in our government.

Sincerely,

 

Benjamin L. Cardin, M.C.
Henry Waxman, M.C.
Steny Hoyer, M.C.
Danny Davis, M.C.
Elijah E. Cummings, M.C.
Fortney Pete Stark, M.C.
Willam Delahunt, M.C.
James P. McGovern, M.C.
Martin Frost, M.C.
Barney Frank, M.C.
Lucille Roybal-Allard, M.C.
C.A. Dutch Ruppersberger, M.C.
Stephanie Tubbs Jones, M.C.
Robert Matsui, M.C.
Edolphus Towns, M.C.
Charles Gonzalez, M.C
Norman Dicks, M.C.
Sam Farr, M.C.
Howard Berman, M.C.
Albert Wynn, M.C.
Raul Grijalva, M.C.
Janice Schakowsky, M.C.
James Oberstar, M.C.
Dale Kildee, M.C.
Lynn Woolsey, M.C.
Carolyn Maloney, M.C.
Chris Van Hollen, M.C.
Major Owens, M.C.
Maurice Hinchey, M.C.
Tammy Baldwin, M.C.
Jim Marshall, M.C.