Politicians will continue to talk about extending prescription-drug benefits to Medicare recipients, but it's doubtful that Congress will go along with a program that is expected to cost taxpayers about $40 billion a year, according to one industry analyst.

Tom Scully, president and chief executive officer of the Federation of American Health Systems, said at a briefing that Congress won't go along with either political party's announced prescription drug programs. Scully said each program would cost about $40 billion annually, although the programs take different approaches.

That's a lot of money for this or the next Congress to consider, particularly for a new program, Scully said. Congress won't go along with the proposed prescription drug plan for fear of it fiscally "blowing up and going out of control," he said.

Also Scully noted that the Congressional Budget Office is expected to release shortly its "mid-session review" that will show federal Medicare savings of "tens of billions" for the next five fiscal years.

Scully noted that savings from Medicare go to general federal operating accounts instead of health-care programs or hospitals and nursing homes.

The federation said that the nation's hospitals "are in dire straits for both long-term viability and continued community outreach," and the $82.7 billion windfall "needs to be returned to the program to allow providers to continue to meet the needs of our nation's 39 million senior and disabled Americans."

Scully described projected Medicare savings as the source of overall federal spending. "Medicare is in the (federal) budget" because it drives "federal (spending) policy," he said.

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