| Medicare administrator withheld cost estimates for congress { September 8 2004 } Original Source Link: (May no longer be active) http://www.boston.com/business/articles/2004/09/08/us_urged_to_punish_ex_medicare_official/http://www.boston.com/business/articles/2004/09/08/us_urged_to_punish_ex_medicare_official/
US urged to punish ex-Medicare official GAO cites law against keeping Congress in dark By Knight Ridder | September 8, 2004
WASHINGTON -- Congress's watchdog agency recommended yesterday that former Medicare administrator Thomas Scully reimburse the Health and Human Services Department for roughly half of his $145,600 salary, on grounds that he improperly ordered his agency's top actuary to withhold cost estimates from Congress.
HHS spokesman William Pierce said the department would not pursue the Government Accountability Office's proposal, however. "We have a difference of opinion and do not see the need to act on their recommendations," Pierce said.
At issue are Scully's threats to fire Medicare's chief actuary, Richard Foster, in 2003 if he shared with congressional Democrats his estimates of the 10-year cost of the then-pending prescription drug benefit. Foster's numbers indicated the benefit would cost roughly $100 billion more than lawmakers had been told by the Congressional Budget Office. The benefit, which the Bush administration favored and pushed using the CBO's $395 billion estimate, passed narrowly.
Knight Ridder first reported in March that Foster considered resigning over Scully's threats and the gag order. The stories spawned several congressional hearings and three separate investigations.
The GAO report cites a federal law prohibiting government agencies from using appropriated funds to pay a government official who prevents a federal employee from communicating with Congress. It concludes that Scully blocked Foster on five separate occasions between June and December 2003 in what was "a prime example of what Congress was attempting to prohibit."
The report said that with Foster's estimates, showing costs over $500 billion, "Congress would have had better information on the magnitude of the legislation it was considering and its possible effect on the nation's fiscal health."
Scully, now a lawyer in private practice, did not return repeated calls for comment that a receptionist said had been passed along to him.
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