Medicare ad campaign legal, GAO says

WASHINGTON - The Bush administration's publicly funded Medicare ad campaign on television is legal, though somewhat political, congressional investigators said Wednesday.

The General Accounting Office review of the ad and other promotional materials about the new prescription drug law pointed out omissions and other weaknesses in the publicity campaign.

But investigators concluded, "In our view, the materials are not so partisan as to be unlawful." Federal law bars public money from being spent for political propaganda.

The review was requested by Democratic opponents of the Medicare law. They contended the administration was using $22-million in taxpayer money, including $9.5-million for a widely aired 30-second ad, to boost the president's re-election campaign rather than educate older people.

The lawmakers asked networks to pull the ad, saying it was too partisan. CBS last month briefly stopped airing it, then reconsidered.

Among the problems pointed out by investigators was the television and newspaper ads and a flier promote the savings from Medicare drug discount cards that are expected to take effect in June, but do not mention that the cards can cost as much as $30.

Tommy Thompson, health and human services secretary, said the GAO "confirmed that the law mandates us to educate seniors and that our ads are not political. ... We feel a great responsibility to make sure seniors understand the new benefits."

Sen. Frank Lautenberg, D-N.J., said the GAO review validated Democratic criticisms that the ads "make the new Medicare law sound better than it is."

Also Wednesday, the administration, responding to complaints from lawmakers, decided not to go ahead with the appointment of the government's food and drug regulator to lead a government study of importing drugs from Canada.

Thompson told the House Energy and Commerce Committee on Wednesday he was aware of the criticism of his decision last month to name Mark McClellan as chairman of a commission that is to report to Congress by December.

McClellan, commissioner of the Food and Drug Administration, has been a leading opponent of allowing drugs from abroad, citing concerns about product safety. Lawmakers who want to ease Americans' access to cheaper drugs from abroad had criticized Thompson for tilting the study against imported drugs by naming McClellan to the top job.

"I'm not going to designate Mark McClellan as chairman," Thompson said.

The study is mandated in the Medicare law. Proponents of imported drugs fought to use legislation last year to legalize imports.

McClellan, meanwhile, reversed course and said he planned to appear Thursday before the Senate Commerce, Science and Transportation Committee to answer questions about the importation issue.

As a result, McClellan's confirmation as the administrator of the federal agency that runs the Medicare and Medicaid programs was expected to move ahead.

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