News in brief - Nov. 26, 2007

Bush vetoes HHS budget bill - Calif. Democrats offer new health system reform bill - Kentucky's physician governor loses re-election

Bush vetoes HHS budget bill

President Bush vetoed the fiscal year 2008 health, education and labor spending bill in part because the measure has $150.7 billion in discretionary spending -- $9.8 billion more than his request. The measure would have boosted funding for the National Institutes of Health and community health centers.

Rep. David Obey (D, Wis.), chair of the House Appropriations Committee, said Bush should look for budget cuts in his latest $200 billion military spending request rather than in health care and medical research.

Calif. Democrats offer new health system reform bill

Democratic leaders in the California General Assembly released a legislative counteroffer to Gov. Arnold Schwarzenegger's health system reform plan early this month. The Democrats' new bill compromises a bit by lowering the mandatory employer health care contribution from a maximum of 7.5% of payroll to 6.5% of payroll. Businesses with $250,000 in payroll or more still would be subject to the higher percentage. Schwarzenegger prefers a maximum tax of 4%.

The bill still differs significantly from the governor's package because it proposes a $2-per-pack cigarette tax increase. Schwarzenegger proposes leasing the state lottery to a private entity to pay for a portion of his plan.

The California Medical Assn. welcomed the Democrats' new measure and said it supports increasing tobacco taxes to fund a health care expansion. "This proposal could break the logjam on health care reform discussions," said CMA President Richard S. Frankenstein, MD.

Kentucky's physician governor loses re-election

Democrat Steve Beshear unseated Kentucky Gov. Ernie Fletcher, MD, on Nov. 6. Beshear, a former Kentucky attorney general and former lieutenant governor, received 619,654 votes (58.7%). Dr. Fletcher, a Republican and a family physician, got 435,857 votes (41.3%).

The governor was tarnished by a scandal related to alleged preferential hiring in Kentucky's Transportation Cabinet. A grand jury indicted Dr. Fletcher in May 2006 on one count each of conspiracy, official misconduct and political discrimination -- all misdemeanors -- related to his conduct during the preferential hiring investigation. Two months later he settled the charges without admitting wrongdoing. Dr. Fletcher said the investigation by Kentucky Attorney General Greg Stumbo, a Democrat, was politically motivated.

Vote refines AMA stance on health reform
The AMA House of Delegates rejected attempts to rescind support of a U.S. House health reform bill and any new government-sponsored health insurance plan during the 2009 Interim Meeting.
Story - AMA House - Slideshow