The White House threatened Tuesday to veto a Senate bill proposing to allow the U.S. government to negotiate prices for prescription drugs under the Medicare program.
The Senate was expected to begin discussing the bill Tuesday afternoon but it was unclear whether Democratic sponsors had enough support to end debate and move to a vote later in the week.
In a statement, the White House said the Congressional Budget Office estimated that the Senate bill "would have a negligible effect on federal spending and provide no substantial savings to the government or Medicare beneficiaries."
President Bush previously vowed to veto the House version of the bill. It has tougher language that would require -- not just allow -- direct negotiation of prices by the government with drug companies.
Medicare is a national health insurance program that covers more than 40 million elderly and disabled Americans. It was expanded at the beginning of 2006 to add a prescription drug benefit provided by dozens of private companies.
The legislation expanding Medicare was approved when Republicans controlled Congress and prohibited the government from negotiating drug prices with manufacturers, such as Pfizer Inc., Merck & Co. Inc. or Eli Lilly and Co. .
Democrats, who won back control of Capitol Hill in the last election, say government negotiations would save money both for the federal budget and for older Americans by helping get the lowest drug prices possible. They note that the Department of Veterans Affairs is allowed to negotiate and gets cheaper prices for some drugs than Medicare programs.
But many Republicans, drug makers and other opponents say such a move would limit patient choices and do little to trim prices. Medicare officials also say drug coverage is working fine now and is costing less than expected.