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GAO says ex-Medicare chief should repay salary

WASHINGTON, September 6, 2004- The former Medicare administrator should repay his salary because of his efforts to keep higher estimates of the cost of a prescription drug plan from Congress last year, congressional investigators said Tuesday. The recommendation from the Government Accountability Office reignited the controversy over passage of the Medicare overhaul and questions about whether the Bush administration intentionally concealed its own estimates of the cost — $100 billion more than the $400 billion it acknowledged — to win support from conservative Republicans.

The release of the report follows last week's announcement that Medicare premiums for nonhospital care will rise a record $11.60 a month next year, which administration officials said was partly attributable to provisions of the new law.

The Associated Press reported last year that Thomas Scully, the Medicare chief until December, threatened to fire chief Medicare actuary Richard Foster to prevent him from giving the information to lawmakers.

Federal law prohibits a federal agency from paying the salary of an official who prevents another federal employee from communicating with Congress, GAO said.

Scully made $145,600 a year, a government spokesman said. The report appeared to call for repayment of roughly half.

 

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