Blake's Think Tank

Two major developments today:

The Medicare buy-in idea that triggered a lot of enthusiasm among Democrats is out thanks to opposition from Connecticut Sen. Joe Lieberman, an Independent. The Senate was scheduled to receive the CBO score of that idea later today. Removal of the Medicare buy-in idea prompted to Mr. Lieberman to offer his support for the bill. Democrats still wavering are Louisiana Sen. Mary Landrieu, Nebraska Sen. Ben Nelson and Arkansas Sen. Blanche Lincoln.

Mr. Nelson remains the most vocal holdout, although his issues are less defined. Abortion measures he supported failed in the Senate and don’t appear likely to appear any the final Senate bill or emerge in conference discussions. He left a meeting with President Barack Obama yesterday saying, “I’m not on the bill.”

Ms. Landrieu and Ms. Lincoln expressed concerns over the cost of the Medicare buy-in proposal. With that off the table, we’re unsure whether any lingering issues remain. Ben Smith of Politico cites an ally of Mr. Lieberman who said, “If I’m Blanche Lincoln, I’d consider converting to Judaisim just to thank Joe Lieberman for what he did for me.” No public statements have been made by either.

The Senate also agreed to narrow the “doughnut hole” in Medicare that requires seniors to pay for their own medicines after they have received $2,700 worth of covered drugs. Under the existing law coverage picks up against when costs exceed $6,100. The AARP wants the gap closed entirely, and that is reflected in the House bill. The current Senate bill closes it by half with an additional $500 reduction in 2010. The House and Senate agreed to settle this in conference so that the Senate bill could proceed, prompting the influential AARP to state, “With your commitment to closing the doughnut hole in conference, consistent with the President’s pledge . . . AARP is pleased to support your efforts to obtain cloture, and urges timely passage of this legislation by the Senate.”