Madam Speaker, I rise in strong support for the Medicare Prescription Drug Price Negotiation Act of 2007, H.R. 4.
This legislation is long overdue. Quite simply, H.R. 4 repeals the provision in current law that prohibits the Secretary of Health and Human Services (HHS) from negotiating with drug companies for lower prices for those enrolled in Medicare prescription drug plans and instead requires the Secretary to conduct such negotiations. As it stands right now, Medicare is the only entity in this country that cannot bargain for lower drug prices. The states, Fortune 500 companies, large pharmacy chains, and the Department of Veterans Affairs (VA) all use their bargaining clout to obtain lower drug prices for the populations they serve.
It is quite astonishing that the current law prohibits Medicare from negotiating for lower prices while the VA is able to negotiate for lower prices for veterans. By not allowing Medicare to negotiate for lower drug prices, the responsibility for moderating drug prices is in the hands of the private drug plans that participate in Medicare. With the failure of private plans to deliver lower drug prices, Medicare beneficiaries end up paying higher out-of-pocket expenses. This failure is also a burden on taxpayers, as they pay approximately three-fourths of the costs of the Part D program.
We simply cannot rely solely on private market competition to secure lower drug prices for Medicare beneficiaries. In fact, a recent report conducted by Families USA found that Medicare Part D drug prices are much higher than those obtained by the VA. This comprehensive study determined that for half of the top 20 drugs prescribed to Medicare Part D beneficiaries, the lowest price charged by Part D insurers is at least 58 percent higher than the same drugs provided to veterans by the VA. It is obvious that the pharmaceutical companies participating in Medicare Part D have failed to achieve what former CMS Administrator Mark McClellan claimed to be “the best discounts on drugs.” We can and must do better in lowering drug prices in the Medicare Part D program.
We must stand up for seniors and people with disabilities and give Medicare the ability to get the lowest possible prices for its beneficiaries. America’s seniors and taxpayers will benefit from this legislation. I urge my colleagues to support the Medicare Prescription Drug Price Negotiation Act of 2007.