WASHINGTON – Senate Republicans appear determined to block legislation letting the government negotiate directly with drug companies for lower drug prices under Medicare, the latest obstacle for a proposal Democrats once trumpeted as a surefire money-saver.

Sen. Mitch McConnell, the GOP leader, said Monday that many members of his rank and file believe the new Medicare prescription drug program is “working beautifully, with remarkable coverage,” and doesn’t need fixing.

He stopped short of flatly saying Republicans would try to block the bill when Democrats attempt to bring it up for passage later in the week – but just barely. Noting that Health and Human Services Secretary Michael Leavitt will meet with GOP senators on Tuesday, he said, “There is substantial opposition to proceeding to that measure.”

President Bush opposes the bill, as he did a stronger House-passed measure that requires the government to negotiate for better prices.

Supporters would need 60 votes to overcome a Republican filibuster, and so far, appear to be short.

Even if the Senate bill passes, the nonpartisan Congressional Budget Office recently predicted it would have only a “negligible effect” on the government’s cost of buying drugs under Medicare.

As it emerged from the Finance Committee, the legislation bars the creation of formularies that restrict the choice of drugs available. CBO said that without that authority “or other tools to reduce drug prices, we believe the secretary would not obtain significant discounts from drug manufacturers across a broad range of drugs.”

The political maneuvering has been complicated in the months since the House passed its bill in January on a vote of 255-170, with divisions evident in both parties within the Senate.

Senate Finance Committee Chairman Max Baucus, D-Mont., jettisoned the House bill in favor of a measure that would have let the administration negotiate but not require it. It cleared the panel last week after Sen. Olympia Snowe, R-Maine, who supports mandatory price negotiation in some cases, agreed not to try to strengthen it until it went before the Senate.

Her spokesman, David Snepp, said she intends to seek a vote on her proposed changes if fellow Republicans allow a debate.

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House supporters of embryonic stem cell research are in the midst of a legislative two-step.

Despite a veto threat, they are eager to send President Bush their bill to loosen restrictions on federal funding for the research, which scientists say holds out hope of progress toward treatment of a variety of diseases. A final vote is expected in several weeks.

But it’s unclear what course they will take with a separate bill that cleared the Senate last week – whether to let it die, or to pass it and send it to the White House. The measure, backed by the administration and many conservative Republicans in Congress, calls for a strong government effort in adult stem cell research.

Passage would presumably give the president the chance to hold a White House signing ceremony on an issue where he is on the short end of public opinion.

Rep. Diana DeGette, D-Colo., a leading Democratic supporter of embryonic stem cell legislation in the House, said in a recent interview that no decision has been made.

Several Democratic aides, speaking on condition of anonymity, said there was strong sentiment for allowing that bill to languish in the House.