Bipartisanship Brings Potential Solutions To Prescription Drugs Issue
Mr. Speaker, I thank my good colleague and friend, the gentleman from Minnesota, for his leadership on this issue, as he has shown time and again. The test of leadership is the ability of an individual, in the face of a great deal of…
Mr. Speaker, I thank my good colleague and friend, the gentleman from Minnesota, for his leadership on this issue, as he has shown time and again. The test of leadership is the ability of an individual, in the face of a great deal of opposition, to consistently stay whole and true to his principles; and the gentleman has done that, even in the face of not only political opposition but leadership opposition within his own party on this issue.
Others of both parties, a cross-section that cuts a big swathe within our Congress, members of what one would call the extreme right and members on the extreme left, have come together on this. I think it is because, one, I think this legislation speaks to our common set of values; and, two, it is because all of us cannot be hard to the fact that because we have heard stories repeatedly of busloads and carloads of individuals who have gone over the border to Canada to buy medications that are life-saving and necessary and have done that as the only means in which they can afford their medication and what has been prescribed. All of us have heard those stories and that is why all of us have come here.
Now, some may have talked about price controls. Others may have talked about just letting the system as is continue. This legislation, which we put together under the gentleman's leadership, uses market forces to bring prices
down. It says that if you can get the medication at a 12 or 15 percent reduction in Canada, and that is a better way for you to go, you would go there. If you can find it cheaper in England or in Ireland or in Germany or Italy, you could go there. That would force at the local pharmacy the prices to begin to reduce here at home for the American consumer and American seniors.
That competition will bring competitiveness to the type of medication you can buy and real reductions in the prices, so that no longer would the American consumer, through inflated prices here at home for prescription drugs, be supporting the price reductions and the affordable prices that Canadians, Brits, the French, Germans, Italians, and Dutch are paying there.
So it uses market forces to reduce prices and brings that competition to bear. I think once that happens, our local pharmacy and drugstore, because they will not want to lose market share, will reduce prices at their local pharmacy. It is the force of the market that will bring prices down.
The gentleman has shown many times I think the prices of drugs on this chart, and I know the gentleman will get to it soon, but that competition for me is not only important for our seniors, it is important to our private businesses. General Motors I think has a $1.2 billion health care package for prescription drugs for their retirees. This type of savings, on average, 20 percent, would save close to $240 million for GM.
But we will see that ripple throughout the entire economy. That would save, for families who are paying $60, $70 for a one-time medication, who can then buy it for $30 or $40, and that is a tremendous reduction.
Second, we are about to embark on the largest expansion of an entitlement in over 40 years. Medicare, we are thinking about adding $400 billion for a prescription drug benefit. Some think it may in the end go up to 5 or $600 billion. I think all of us owe the taxpayers a little bit of respect. And when I say respect, respect is understanding the value of their tax dollars should go the longest way possible. Therefore, if we can get the prices for a prescription drug or a specific drug, whether it is arthritic, heart, diabetic medication at 40 percent reduction or 30 percent reduction, we owe the taxpayers through Medicare the right to get them the best price.
Corporations and the pharmaceutical company will get their profits, but this legislation is not about their best profits. It is about the best price for the seniors and our taxpayers. And two myths I want to strike down, one myth that those on the other side say, and they constantly say, is that if you do this you are going to destroy our ability to develop new medications. I think that taxpayers have been tremendously generous to the pharmaceutical industry. Through the research and development tax credit, taxpayers have supported research at these corporations, and they have paid for that research through the tax credits' R&D.
Second, the taxpayers are being very generous because if you look at cancer drugs, you look at drugs for AIDS, every one of them was developed through the National Institutes of Health, which is a taxpayer-funded research institute. So in my view, R&D will never get hurt as long as the taxpayers maintain their generosity to the tax credit, the R&D, and through NIH. So that myth does not work.
Second, that we are somehow endangering the health and safety of the medications that we have at our local pharmacy and drug stores. The truth is every one of the medications we have talk about are FDA, Federal Drug Administration, approved. They are the drugs that were manufactured at the Food and Drug Administration FDA facility, and these facilities produce the drugs for the markets here in America, Canada, England and France, the same companies. They are name-brands drugs at 20, 30, 40, 50 percent reduction. So safety is not a concern. Development of new products is not a concern. We would do great work for our taxpayers and our elderly and our American consumers.
I know the gentleman has some examples to show to the people who are listening and watching the debate of this important issue.
Mr. Speaker, as the gentleman knows, the pharmaceutical companies set up a front group, because if it was paid for by the pharmaceutical companies, it would totally be discredited; but they set up a front group to advertise and start to attack or pressure individual Members on this legislation. And they ran radio ads saying, call your Member, say you do not want unsafe drugs in the district, using scare tactics to frighten senior citizens and to frighten American consumers.
Well, in the Chicago area it has totally backfired so I want to thank them for spending their money to help us. But I decided to go on with my own radio ad to counter what the pharmaceutical industry was doing and to tell them the truth and the public the truth about what was going on, what we were trying to do, which is bring competition, bring the prices down, make medications more affordable, save the taxpayers money.
The gentleman and I have talked about it, others have talked about it; I believe that what the drug pharmaceutical companies were doing here was a sign of desperation.
Now, when I mentioned to the gentleman I was running radio ads, a colleague of ours from Indiana mentioned the direct mail he was getting in his district. A colleague of ours from Massachusetts was mentioning the phone calls where pharmaceutical companies were calling up telling the same message they were delivering on the radio, saying, talk to your Congressman, and then patching that through. Once the staff of the Member's office explained it, the seniors not only felt good, they were happy that he was on the legislation. But they are using the scare tactics in a sign of desperation. Their position is untenable.
We have competition for a car. You want to buy a Toyota, you can buy a Toyota. You want to buy General Motors, you can buy General Motors. You want to buy a Renault, you can buy a Renault, a Saab. You want to buy strawberries all year round, you can do that. You want to buy software from an American company, you can do that. You want to buy them from a German company, SAP, you can do that. The only area where you cannot buy other products from other markets in the same product line is in the pharmaceutical area. We can do it in cars, stereos, TV, electronics. And in all of those places, consumer prices have dropped dramatically. Competition has worked.
The pharmaceutical industry has gamed the political system. They have gamed the legal system, and they have kept competition out. We pay the highest prices in the world for pharmaceutical drugs. The gentleman's chart shows the 10 most-used drugs for seniors. There is a $700 spread where American seniors are paying $700 more than their counterparts in Germany, 20 percent more in Canada. Why? Because the political system has been gamed by
the pharmaceutical industry to keep competition out of the market.
Now, I have seen the marketplace work. It does it in every product. It brings efficiency to the marketplace. The reason we have this tremendous inefficiency in the pharmaceutical area is because we have a closed market. You open up the marketplace to competition, prices will drop.
One of the things I learned a long time ago, maybe this is because I am a middle child. I used to say about middle children, we wrote a book, ``War or Peace.'' We could do either one. If someone was going to go out and say something like that to scare and intimidate people, they needed to be pushed back and given some of their own medicine.
What they did in Chicago, what they are doing around the country, the gentleman can correct me if I am wrong, but I think it is about $20 million big pharmaceutical companies are spending to scare people. It is a sign of desperation. They are using desperate tactics. And I hope it is backfiring on our colleagues and realizing that type of pressure politics will not work, scaring people. The public is on to what they were doing.
That is what I decided to do. We have run it in the Chicago area. We have got a tremendous amount of attention and support by the public for speaking out and speaking up against the pharmaceutical industry scare tactics. If they wanted to have an honest debate, this is worth having a debate. I look forward to it. But what they are doing is exactly what the gentleman said, they are lying. They are scaring people when they need not scare them.
Mr. Speaker, may I ask my colleague, what you have as an ad in your area paper, where people can buy the same medications that they could get at their local pharmacies, if they went to Canada, the reductions, if you could read a few of those comparatives.
Our price being the one in Canada.
That is a 50 percent reduction, little more.
Mr. Speaker, if my colleague would yield, as a friend of ours once said, if they say it ain't about money, it is about money, and that is what this is about. It is not about abortion. It is not about safety. It is not about anything else but about money.
I respect the need for them to make a profit. They will make a profit, but it is clear what is going on here is that the American consumers, the American elderly and American taxpayers are subsidizing the rest of the world, and it is high time we stand up for those folks who are trying to make ends meet, whether they be taxpayers, sick patients, whether they be the elderly, get the prescriptions. It is clear because all those drugs are name brand drugs, same name brand drugs made in the same facility, they are just sold at a 50 or more percent reduction in Canada. In that type of competition your local pharmacist can compete if they had that same type of price, and that is what we are talking about.
I think that our other colleague from Michigan laid it out. What would happen is you would see a dramatic reduction in prices here in the United States. There would be some levelling off. Prices in other places would rise. We can call it reimportation. I like to refer to it as market access. We would go from a closed market to an open market. You have real competition. Once that occurred, what would happen at that point, prices would be reduced here at home.
More importantly, I will use the General Motors example. There are businesses all across the country, look at the steel industry, what was really depressing the steel industry was not the competition in prices. It was that our steel industry had all these legacy costs for retirees, health care costs. You get the reductions like this, and the costs for our steel industry would be dramatically reduced, but that is across big businesses and small businesses.
Small businesses, only one-third of them provide health care. Two- thirds do not. Why? Because it is too costly. One of the greatest causes of health care inflation is, which is now running at 20-25 percent a year, two factors, the uninsured and prescription medicines. Those are the factors behind health care inflation.
We have got to bring this under control. The way to do it is not mandate it. Let us use market forces to do it.
Again, I want to go back to what our opponents have done. I again believe that their desperation and desperate tactics, whether that is through the direct mail as you have shown, the radio commercials that are running in my district, the telephone campaign that is running in other folks' districts, what is interesting is, as I have said before and I will say again, they could have said anything. They can talk about their life-saving medications. They could have talked about their innovation, how many people they employ. They did not talk about something positive. They tried to scare people about what we are trying to do.
To me, their first argument, their first salvo, the first arrow they shot is indicative of the emptiness of their position. They did not say something positive about what they are trying to do. They are trying to run us down, helping seniors and consumers.
Again, I want to thank both of you. I do have to go. I thank both of you for your leadership. One of the things I am most impressed with is the huge bipartisanship that has been shown on this, the cross-sections of both caucuses, the Democrats and Republicans, who have come together, both in the House and in the Senate where 82 Members voted for similar legislation, although it is only specific to Canada.
We are talking about the European Union here, which I think would be real competitive because we have a common set of principles. We have heard too many stories of people missing medication, people, as my colleague has always said, and if I could steal this from him for a second, we have turned our elderly into drug runners, coyotes running over the border trying to get medication.
Both of you have districts obviously closer to Canada than mine, but in Illinois there are actually three or four storefronts opening up to do distributions from Canada. You see it on a real day-to-day basis what is going on, and you see the competitive market forces that if we brought them here people would not drive 120 miles, which they
do today. They would drive 12 minutes, and they would get the medication at their local pharmacy.
We need that type of competition here, and it is the right thing to do, and I think we are on the right course. The desperate tactics shown by our opponents reflect the success of our message, and I think we are scheduled to have a vote next week, which I think America needs to focus on and bring their attention to.
Again, I want to thank you for doing this again today, and I think we are going to have some other time this week to talk about this again.