COURT SECURITY IMPROVEMENT ACT OF 2007--MOTION TO PROCEED--Resumed
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, may I ask, what is the business, what is the regular order? Mr. President, I ask unanimous consent to speak as in morning business for…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, may I ask, what is the business, what is the regular order?
Mr. President, I ask unanimous consent to speak as in morning business for about 10 minutes.
Mr. President, I wish to take a few minutes to talk about the vote we had earlier today on the Medicare noninterference provision, which prohibits the Secretary of the Department of Health and Human Services from getting involved in the negotiations between the private plans offering the Medicare drug benefit and the drug manufacturers.
I did not vote for cloture today because I support the Medicare prescription drug benefit. The benefit is working well. Seniors have access to drugs. They are saving money, and most beneficiaries are happy with the benefit. Removing the noninterference provisions, as the Democrats want to do in S. 3, would jeopardize the Medicare drug benefit and could force beneficiaries to rely on a one-size-fits-all big Government bureaucracy for their prescription drugs.
I was a strong supporter of the 2003 Medicare drug bill and worked very hard to get it passed. For too long, Medicare had not covered prescription drugs for seniors, even though many of these drugs are life sustaining and life enhancing. Since the drug bill was enacted, all Medicare beneficiaries have access to prescription drug coverage, and low-income beneficiaries receive substantial help in affording their prescription drugs.
One of the most important elements in the 2003 bill was allowing private plans to offer the prescription drug benefit. Under the bill, these plans negotiate with drug manufacturers for the prices on prescription drugs, and then market their benefits to beneficiaries.
Medicare beneficiaries have a choice of plans to select. In my State of Kentucky, there are 24 companies offering 54 plans. All of these plans are different, and each one of them offers a different formulary. Plans compete with each other by offering the best benefit, which may not mean the same thing to all 40 million Medicare beneficiaries. Some beneficiaries may not have many drug expenses each month, so they can go with a cheaper plan. Other beneficiaries may have more costly drug expenses and may need a plan that offers more coverage.
The point of having private companies offer the drug benefit was so seniors could pick the plan that works best for them. It is working, and seniors are saving a substantial amount of money. In fact, the average beneficiary is saving about $1,200. Ninety percent of Medicare- eligible beneficiaries have drug coverage, and 80 percent of them are satisfied with the program.
To me, this sounds like a success--a real success. Part of this success comes from the fact that we kept the Medicare bureaucrats out of the program. Traditionally, Medicare is a one-size-fits-all program that sets prices for doctors, hospitals, nursing homes, hospice care, ambulance providers--you name it.
Medicare beneficiaries should ask their doctors the next time they see them how fairly Medicare reimburses them. I suspect most doctors would say their reimbursements fall short of their actual costs, and they are constantly on the lookout for ways Medicare may try to change their reimbursement for the services they offer.
The drug benefit, however, is different. It allows the drug plans to negotiate directly with the manufacturers for prescription drugs. These plans, then, have to attract Medicare beneficiaries to join their program by offering the best possible benefit. A plan that does not offer a competitive benefit will not attract members. A plan that offers an attractive benefit will attract members to its rolls.
It is simple--really, it is--and it is working. The Democrats would have you believe Government negotiation is going to save money for Medicare and seniors. Unfortunately, they are wrong.
First of all, saying Medicare will ``negotiate'' is a fallacy. Medicare does not negotiate; it sets prices. Just ask your doctor how often the Medicare Program negotiates.
Second, the Democrats haven't said a word about how this new authority would actually work. There wasn't one word in S. 3 about what this negotiation would look like. Is Medicare going to negotiate for only a few drugs, as some Members have suggested? No one knows. Are they negotiating prices for all drugs? No one knows. Will the Secretary actually deny access to certain drugs if he doesn't get the price he wants? No one knows. It seems to me that before you undermine a successful, well-received program such as the Medicare prescription drug benefit, you better have the guts to tell people exactly how it is going to change.
Third, there is a real concern by experts in this area that Government price-setting for Medicare drugs could cause drug prices to increase for other payors, including Medicaid, the Veterans' Administration, and private purchasers. This hardly seems like a good plan.
Finally, the Congressional Budget Office has said repeatedly over the years that removing this provision has a negligible effect on Federal spending. In fact, CBO Directors under both Republican- and now Democratic-controlled Congresses have come to the same conclusion. Without Medicare creating a national formulary and limiting access to drugs, it is unlikely they would be able to get a significant discount on drugs.
I also wish to point out that this provision isn't new. In fact, prior to the passage of the 2003 Medicare drug bill, many Members of Congress had proposals to add a prescription drug benefit to Medicare. Many of these bills, including those by Democratic lawmakers, included a noninterference provision. For example, the former Democratic leader, Senator Daschle, in the Senate had a bill in 2000 that included such a provision. This bill was cosponsored by 26 Democratic Members still serving in Congress, including the current chairman of the Finance Committee, Senator Baucus. It is curious that this language was fine for Democratic bills but for some reason isn't fine presently for this bill.
The Medicare drug bill we passed in 2003 is working well. Beneficiaries have access to drugs, and people are saving money. Now is not the time to significantly alter the program and rip out the competition that is working so well.
Mr. President, I yield the floor, and I suggest the absence of a quorum.