WEBCAST: House Improves Medicare; Seniors to Save on Drugs
January 12, 2007
Bill will Remove Ban on Negotiating Lower Prices on Medicare Prescription Drugs
Today, the House overwhelming passed a bill (HR 4) repealing the current prohibition on negotiating the prices of Medicare prescription drugs. The bill, co-sponsored by Rep. Mike Thompson (D-CA), will require the Secretary of Health and Human Services to conduct cost-saving negotiations with pharmaceutical companies. These negotiations are expected to result in real savings for 22 million Americans enrolled in Medicare.
“The current prohibition on negotiating lower prices is an insult to the American people,” said Thompson. “This legislation is an important first step because it gives the Secretary another tool to maximize savings for seniors and value for taxpayers. While it will not instantly result in huge savings on prescription drugs, it brings us a one step closer to providing all older Americans with the medicines they need.”
The bill provides the HHS Secretary broad discretion on how to best implement the negotiating authority and achieve the greatest price discounts for Medicare beneficiaries. In addition, it continues to prohibit the HHS Secretary from requiring a particular formulary (i.e., a list of covered drugs) to be used by Medicare prescription drug plans or limiting access to any prescription medication. During debate on the House floor, Thompson noted that allowing the Secretary to negotiate prices complements - but does not replace - the negotiations being conducted by private plans. He also pointed out that this legislation does not create price controls on prescription drugs. Thompson also supported this bill because lower prices means it will take seniors longer to hit the coverage gap - also known as the “donut hole” - the period during which they have to pay 100 percent of their drug costs.
“Less than 25 percent of the drug plans in my district offer any sort of coverage in the 'donut hole' - and those plans have premiums as upwards of $100 a month,” said Thompson. “A lot of Northern California's seniors can't afford that. So, when they hit the coverage gap, they foot the entire bill or they go without their medicine. This bill is one more tool that can be used to lower costs and prolong the amount of time it takes before seniors hit that gap.”
A recent poll by Newsweek found that 92 percent of Americans support the bill. Rep. Thompson is a member of the House Ways & Means Healthcare Subcommittee.Click here to hear Congressman Thompson's floor speech. Time codes: CSPAN 1/12/07 11:59:40 - 12:01:22
“The current prohibition on negotiating lower prices is an insult to the American people,” said Thompson. “This legislation is an important first step because it gives the Secretary another tool to maximize savings for seniors and value for taxpayers. While it will not instantly result in huge savings on prescription drugs, it brings us a one step closer to providing all older Americans with the medicines they need.”
The bill provides the HHS Secretary broad discretion on how to best implement the negotiating authority and achieve the greatest price discounts for Medicare beneficiaries. In addition, it continues to prohibit the HHS Secretary from requiring a particular formulary (i.e., a list of covered drugs) to be used by Medicare prescription drug plans or limiting access to any prescription medication. During debate on the House floor, Thompson noted that allowing the Secretary to negotiate prices complements - but does not replace - the negotiations being conducted by private plans. He also pointed out that this legislation does not create price controls on prescription drugs. Thompson also supported this bill because lower prices means it will take seniors longer to hit the coverage gap - also known as the “donut hole” - the period during which they have to pay 100 percent of their drug costs.
“Less than 25 percent of the drug plans in my district offer any sort of coverage in the 'donut hole' - and those plans have premiums as upwards of $100 a month,” said Thompson. “A lot of Northern California's seniors can't afford that. So, when they hit the coverage gap, they foot the entire bill or they go without their medicine. This bill is one more tool that can be used to lower costs and prolong the amount of time it takes before seniors hit that gap.”
A recent poll by Newsweek found that 92 percent of Americans support the bill. Rep. Thompson is a member of the House Ways & Means Healthcare Subcommittee.Click here to hear Congressman Thompson's floor speech. Time codes: CSPAN 1/12/07 11:59:40 - 12:01:22
Issues:Health Care