News in brief - July 18, 2005

Federal agents crack down on Calif. marijuana producers - Congress looks at VA shortfall - Bill would let health plans cross state lines

Federal agents crack down on Calif. marijuana producers

Federal agents in California unsealed charges against 19 individuals in June, accusing them of growing and trafficking marijuana through dozens of locations in the San Francisco area. Three medical marijuana dispensaries were among those charged.

Fifteen people were arrested and more than 9,000 marijuana plants were seized in the operation, which came just two weeks after the U.S. Supreme Court ruled that federal law prohibiting the sale of narcotics superseded California state law that allows patients to use medical marijuana if doctors recommend it.

The seized marijuana plants had an estimated street value of more than $5 million, according to the U.S. Drug Enforcement Administration.

Congress looks at VA shortfall

Lawmakers scrambled late last month to find funding to address a looming health care budget shortfall at the Dept. of Veterans Affairs, but they adjourned before approving a consensus bill that would alleviate the problem.

The House approved a stand-alone measure that would begin to address the shortfall, and the Senate attached additional funding to an unrelated appropriations bill. The two chambers did not agree on which strategy to adopt before departing for the July 4 congressional recess.

Bush administration officials revealed in June that the VA health programs will come up roughly $2.6 billion short next fiscal year unless Congress grants additional funding. The agency said it underestimated costs for returning servicemen from Iraq and Afghanistan and that it already has been forced to shift dollars from other programs to avoid running out of money this year.

Bill would let health plans cross state lines

There is growing support for legislation that would allow individuals to bargain-shop for health insurance plans sold in other states. Proponents say the measure would help low-income families find affordable health plans that fit their needs. The bill, introduced by Rep. John Shadegg (R, Ariz.), was recently the topic of a House subcommittee hearing at which the Energy & Commerce chair, Rep. Joe Barton (R, Texas), suggested that it could soon come before the full committee for a vote. The bill also recently gained its first Democratic co-sponsor, Rep. Ed Towns (D, N.Y).

Opponents of the measure say allowing health plans to market their products across state lines would result in the companies setting up in states with the fewest mandates. "When you let insurers snake out from under consumer protections, like guaranteed issue, coverage may be less expensive for some people. That's because it is not available at all to others," said Rep. Sherrod Brown (R, Ohio).