Minority of Senate Blocks Vote to Allow Medicare to Negotiate Lower Drug Prices
By: Source: AARP.org Date Posted: 2007-05-03 10:59:00-04:00
On Wednesday, April 18, a minority of the U.S. Senate defied the overwhelming opinion of the American public by refusing to allow a vote on legislation that could help lower prescription drug costs for millions of Medicare beneficiaries.
Despite the support of a majority of their colleagues and nearly 90 percent of voting-age Americans, 42 Senators blocked the Medicare Fair Prescription Drug Price Act of 2007 from coming up for a vote—or even a debate—on the Senate floor; 55 Senators favored bringing the bill to a vote but 60 votes were needed.
The bill would have lifted the existing ban prohibiting Medicare from negotiating with drug companies such as Pfizer, Bristol-Myers Squibb, Merck and others for lower prices in Medicare Part D.
Where’s the Money?In addition to drug companies’ contributions to candidates, the industry’s lobbying expenses have also soared. In 2005 and the first half of 2006, those expenses came to a hefty $155 million, according to the Center for Public Integrity. In part, that money paid for the services of 1,100 lobbyists, more than two for every member of the U.S. Congress.
“Pharmaceutical manufacturers have given more than $20 million in campaign contributions for the last two cycles alone. They followed that up over the last few months with misleading polling and disinformation aimed at scaring older Americans into preserving the exorbitant profits that pharmaceutical companies make on brand-name drugs,” said David Sloane, AARP Director of Government Relations.
“Allowing Medicare to negotiate for lower drug prices is common sense, and could lead to more affordable drugs for Medicare beneficiaries and lower costs for all taxpayers,” he added.
Last week, AARP alerted Senators that the Association is recording key votes on this legislation and will be informing members of how their Senators voted.
The Need for SunshineAs it stands now, pricing data collected by Medicare cannot, by law, be publicly revealed. Absent this transparency, it is impossible to evaluate how effectively private insurers are negotiating on behalf of millions of Medicare beneficiaries.
In January, the House of Representatives passed a bill requiring Medicare to negotiate better prices for prescription drugs.
AARP Redoubles Efforts on Affordable Prescription DrugsDespite the outcome of the Senate bill, prescription drug affordability remains a high priority for AARP and its members.While millions of older Americans and persons with disabilities have been helped by Medicare Part D drug plans, more should be done to put downward pressure on drug prices. AARP will continue to support legislation that would allow Americans to safely and legally import lower-priced prescription drugs from abroad, and legislation to help bring generic drugs to market sooner, including a bill to allow the Food and Drug Administration to approve generic versions of biologic therapies. AARP will continue to monitor the pricing practices of the prescription drug industry through our Rx Watchdog report and quarterly drug pricing studies. AARP also is working to pass legislation that would reduce the asset test that prevents low-income people from qualifying for extra help under the Medicare drug program.
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