Mr. Speaker, I yield myself such time as I may consume. I will be submitting for the Record an editorial from today's New York Times which concludes by suggesting that the bill, H.R. 4, does not require the Secretary to negotiate prices…
Mr. Speaker, I yield myself such time as I may consume.
I will be submitting for the Record an editorial from today's New York Times which concludes by suggesting that the bill, H.R. 4, does not require the Secretary to negotiate prices for all 4,400 drugs used. A smart Secretary could simply determine which prices paid by the plan seem most out of line with prices paid by other purchasers and then negotiate only on those drugs. The private plans are exclusively allowed to negotiate even lower prices, if they can. This sort of flexibility would pose no threat to the free market.
It is time for the Medicare drug program to work harder for its beneficiaries, without worrying so much about the pharmaceutical companies.
Then, I would also like to respond to what I am sure was not, by one of the previous speakers, an intentional fabrication or misstatement, just probably a remark due to the inability to read a bill and understand what it means. And it is quite correct that in 2000 our motion to recommit had some wording that limited interference by the Secretary. But it is also important to note that it was a completely different bill; and as such, the motion to recommit had no relationship to this bill. And to suggest otherwise is an outright lie. And I will let it stand with that. If anybody would like to see the previous bill, we have information that will cover it.
I rise in support of H.R. 4. It is a simple, straightforward bill that should pass by unanimous consent if the Members of Congress want to help senior citizens, rather than the special pharmaceutical interests.
The bill rights a wrong included in the prescription drug act passed in 2003. And it takes away the special interest protection that prohibits the Secretary from negotiating to get better prices for Medicare beneficiaries.
The present law includes a flat out prohibition against using the negotiating ability and clout of 43 million Medicare beneficiaries to get better prices. That is wrong. We don't prohibit the government from negotiating prices for airplanes, even for oil royalties in the gulf, for highway construction or for anything else the government purchases.
Our bill today eliminates that prohibition and goes one step further. It requires the Secretary to use the market strength of Medicare's 43 million beneficiaries to negotiate better prices for seniors and people with disabilities. We had to go further than simply eliminating the prohibition because the current administration has been so vocal in their opposition to using this tool,
even if given the authority. Indeed, they have threatened to veto.
Countless studies show that Medicare beneficiaries are not getting very good deals on their prescription drug prices. The Bush administration has shown their ability to negotiate discounts on other drugs. Secretary Thompson did this twice, once when we had the anthrax attacks and then again when we faced the flu vaccine shortage.
This change shouldn't be controversial at all. It is a change that is supported by over 90 percent of the American public, and it is a change that should lower taxpayers' and seniors' expenses. It is a change supported by advocates for Medicare beneficiaries, the physicians who care for them, and the community pharmacists who fill their prescriptions.
It is a change that is even supported by AARP, which I continue to contend wrongly endorsed the Republican bill in the first place. But even they agree that the government should be empowered to negotiate better drug prices.
The only interests standing up against that legislation are the same interests who got the prohibition on negotiation included in the first place, the pharmaceutical drug lobby and those whose campaigns they funded.
Those days are over. Congress is no longer about special interests. It is about the interests of the American people, and that is why we brought this bill up as part of the first 100-hour agenda. We urge the President to reconsider his opposition to it, and to work with us to get Medicare beneficiaries a better deal on their prescription drug prices, and to get a better deal for the American taxpayers.
It is an important first step in our goal to improve the Medicare prescription drug program for seniors and people with disabilities. I look forward to working with my colleagues and with the administration to improve the Medicare program.
[From the New York Times, Jan. 12, 2007]
Negotiating Lower Drug Prices
From all the ruckus raised by the administration and its
patrons in the pharmaceutical industry, you would think that
Congressional Democrats were out to destroy the free market
system when they call for the government to negotiate the
prices of prescription drugs for Medicare beneficiaries. Yet
a bill scheduled for a vote in the House of Representatives
today is sufficiently flexible to allow older Americans to
benefit from the best efforts of both the government and the
private rug plans.
The secretary of health and human services should be able
to exert his bargaining power with drug companies in those
cases in which the private plans have failed to rein in
unduly high prices--leaving the rest to the drug plans. The
result could be lower costs for consumers and savings for the
taxpayers who support Medicare.
Under current law, written to appease the pharmaceutical
industry, the government is explicitly forbidden from using
its huge purchasing power to negotiate lower drug prices for
Medicare beneficiaries. That job is left to the private
health plans that provide drug coverage under Medicare and
compete for customers in part on the basis of cost. The
Democrats' bill would end the prohibition and require--not
just authorize--the secretary of health and human services to
negotiate prices with the manufacturers. That language is
important since the current secretary, Michael Leavitt, has
said he does not want the power to negotiate.
No data is publicly available to indicate what prices the
private health plans actually pay the manufacturers. But
judging from what they charge their beneficiaries, it looks
like they pay significantly more for many drugs than do the
Department of Veterans Affairs--which by law gets big
discounts--the Medicaid programs for the poor, or foreign
countries. The administration argues, correctly, that the
private plans have held costs down and that there is no
guarantee the government will do any better. The bill, for
example, prohibits the secretary from limiting which drugs
are covered by Medicare, thus depriving him of a tool used by
private plans and the V.A. to win big discounts from
companies eager to get their drugs on the list. The secretary
does have the bully pulpit, which he can use to try to bring
down the cost of overpriced drugs.
The bill also does not require the secretary to negotiate
prices for all 4,400 drugs used by beneficiaries. A smart
secretary could simply determine which prices paid by the
plans seemed most out of line with the prices paid by other
purchasers and then negotiate only on those drugs. The
private plans are explicitly allowed to negotiate even lower
prices if they can. This sort of flexibility should pose no
threat to the free market. It is time for the Medicare drug
program to work harder for its beneficiaries without worrying
so much about the pharmaceutical companies.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I am pleased to yield 1\1/2\ minutes to the gentleman from Connecticut (Mr. Larson) who, like the National Committee to Preserve Social Security and Medicare, knows that H.R. 4 would be an important step to improve part D.
Mr. Speaker, I am pleased to yield 1\1/2\ minutes to the distinguished gentleman from California, who agrees with AARP that the Secretary can achieve additional savings for beneficiaries under H.R. 4.
Mr. Speaker, I am pleased to yield 1\1/2\ minutes to the gentleman from Washington (Mr. McDermott), who agrees with AIDS Action that an effort to ensure the Secretary of Health and Human Services has authority to negotiate drug prices is important to the continuing success of part D.
(Mr. McDERMOTT asked and was given permission to revise and extend his remarks.)
Mr. Speaker, prior to recognizing the distinguished majority leader for 1 minute, I would just like to remind my friend from Missouri that at least in California we require law students to be able to read well enough to understand that bills they wave in the air are different from the bill we are considering today.
I wouldn't call it a lie to suggest that what we passed in 2000 is different from what we have today, but I would consider it close to shysterism in terms of at least dealing with law.
Mr. Speaker, I am pleased at this point to recognize the distinguished majority leader for 1 minute.
Mr. Speaker, I would like to recognize the gentleman from California (Mr. Costa) for a unanimous-consent request.
(Mr. COSTA asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I am pleased to yield 1\1/2\ minutes to the gentleman from California (Mr. Becerra), who agrees with the Reliance for Retired Americans that, by harnessing the bargaining power of 40 million Medicare beneficiaries, H.R. 4 will bring relief to older and disabled Americans.
Mr. Speaker, I remind my good friend from Wisconsin that he is quite right about the motion to recommit, but it was to a different bill. It was to H.R. 4770, which has no relationship to the bill that we are discussing today.
Mr. Speaker, I yield 1\1/2\ minutes to the distinguished gentleman from Texas (Mr. Doggett).
Mr. Speaker, could I inquire of the time remaining on both sides.
Mr. Speaker, I am delighted to yield 1\1/2\ minutes to the distinguished gentleman from Georgia (Mr. Lewis) who, like the Medicare Rights Center, knows if this bill becomes law, lower prescription drug prices will help millions of Medicare beneficiaries.
Mr. Speaker, at this time I am happy to yield 1\1/2\ minutes to the distinguished gentleman from Oregon (Mr. Blumenauer).
Mr. Speaker, at this time I am delighted to yield 1\1/2\ minutes to the distinguished gentleman from New Jersey (Mr. Pascrell).
Mr. Speaker, I am pleased to yield 1\1/2\ minutes to the distinguished gentlewoman from Nevada (Ms. Berkley), who agrees with the American Nurses Association that the direct negotiation authority in this bill is a commonsense means of improving access to needed prescription medications.
Mr. Speaker, I am happy to yield 1\1/2\ minutes to the distinguished gentleman from Wisconsin (Mr. Kind), who agrees with the National Senior Citizens Law Center that H.R. 4 is an important step toward making the prescription drug benefit simpler, more affordable, and reliable.
(Mr. KIND asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I am delighted to yield at this point 1\1/2\ minutes to one of the authors of the bill, the gentlewoman from New Hampshire (Ms. Shea-Porter).
Mr. Speaker, I am pleased to yield 1 minute to the gentleman from Connecticut (Mr. Murphy), who concurs with Consumers Union that government-priced negotiations on behalf of consumers could cut pharmaceutical drug prices roughly in half.
Mr. Speaker, I am delighted to yield 1 minute to the distinguished gentleman from Tennessee (Mr. Cohen).
Mr. Speaker, I am delighted to yield 1\1/2\ minutes to the distinguished member of our Ways and Means committee, the gentleman from New York (Mr. Crowley), who agrees with Families USA, the national voice of health care consumers, that H.R. 4 is an important first step in improving part D.
Mr. Speaker, before recognizing the next speaker, I would like to concur with the remarks of the gentleman from Illinois. Many of us on this side of the aisle shared his concern with the rapidity with which we had to bring this to the floor. I want to commend both the ranking member and the chairman of the Ways and Means Committee as well as the ranking member of the Health Subcommittee for attempting to have as much time as we could for Members on both sides of the aisle to work on this bill before its coming to the floor today, but I do concur with his statement.
Having said that, I would like to recognize the gentleman from Connecticut (Mr. Courtney) for 1 minute.
Mr. Speaker, I am delighted to recognize the distinguished gentleman from Illinois (Mr. Hare) for 1 minute and comment that, before joining us, he served for 24 years as Mr. Lane Evans' district director, a man who is known on both sides of the aisle for his support for veterans' issues.
Mr. Speaker, I yield to the gentlewoman from Texas (Ms. Jackson-Lee) for the purpose of a unanimous consent request.
(Ms. JACKSON-LEE of Texas asked and was given permission to revise and extend her remarks.)
Mr. Speaker, I am delighted to yield 1 minute to the gentleman from Pennsylvania (Mr. Altmire), one of the cosponsors and coauthors of the bill.
Mr. Speaker, I yield to the gentleman from North Carolina (Mr. Etheridge) for the purpose of a unanimous consent request.
(Mr. ETHERIDGE asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I am honored to yield 1 minute to the gentlelady from Hawaii (Ms. Hirono), a lady for whom I serve as an honorary district representative on the island of Lanai.
Mr. Speaker, at this time I am delighted to yield 1 minute to the gentlewoman from Ohio (Ms. Sutton).
Mr. Speaker, I am delighted to yield 1 minute to the gentleman from California (Mr. Baca), who agrees with the National Community Pharmacists that the non-interference clause has directly disadvantaged independent pharmacies throughout the implementation of part D.
Mr. Speaker, for the purpose of a unanimous consent request, I yield to the gentleman from Massachusetts (Mr. Lynch).
(Mr. LYNCH asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield 1 minute to the distinguished gentlelady from California (Mrs. Davis).
Mr. Speaker, I am pleased to recognize the distinguished gentlewoman from Connecticut (Ms. DeLauro), who agrees with the Center for Medicare Advocacy Assessment that H.R. 4 will keep drug prices from skyrocketing. And I yield to the gentlewoman for 1 minute.
Mr. Speaker, I am delighted to yield our remaining 1 minute to the gentlewoman from Ohio (Mrs. Jones) to close for our side. She recognizes that the Center for Diabetes is a front group for PhRMA.