Democrats Reintroduce Medicare Drug Price Negotiation Legislation
Medicare Prescription Drug
Senate Majority Whip Richard Durbin (D-Ill.), along with Reps. MarionBerry (D-Ark.) and Jan Schakowsky (D-Ill.), on Tuesday reintroducedlegislation that would require the federal government to negotiateprices directly with pharmaceutical companies for medications under theMedicare prescription drug benefit, CongressDaily reports. The bill would allow Medicare to establish a formulary that would give HHSleverage in negotiations. Durbin said, %26quot;Under current law, Medicarebeneficiaries are stuck with confusing, costly plans designed byinsurance and drug companies. What seniors deserve is an affordable,straightforward drug benefit.%26quot;
According to a report released Tuesday by Consumers Union and the Medicare Rights Center,private insurers do not negotiate significant savings for Medicarebeneficiaries. The report found that Medicaid saves 26% on drugspending, while the Medicare drug benefit will save 8.1% this year.Berry estimated that about $40 billion could be saved through agovernment-led drug negotiation program. He said that the bill would bereintroduced until it is approved.
Mohit Ghose, a spokesperson for America’s Health Insurance Plans,said Medicare drug benefit costs have been below estimates the last twoyears and noted that private insurance plans are offering Medicare drugplans at lower-than-expected premiums. "Negotiation that is occurringis obviously producing results," Ghose said (Edney, CongressDaily, 10/24).
Reprinted with permission from kaisernetwork.org. Youcan view the entire Kaiser DailyHealth Policy Report, search the archives, and sign up for email deliveryat kaisernetwork.org/email. The Kaiser Daily HealthPolicy Report is published for kaisernetwork.org, a free service of The HenryJ. Kaiser Family Foundation. 2007 Advisory Board Company and KaiserFamily Foundation. All rights reserved.
By: Kaisernetwork.org – Wed, 10/24/2007 – 17:15
