Medicare Prescription Drug Price Negotiation Act Of 2007
Mr. Speaker, over 90% of people with Medicare, that's 38 million Americans, get their prescription drugs through Medicare Part D. These seniors are satisfied with their coverage and are finally receiving the drugs they need at costs they…
Mr. Speaker, over 90% of people with Medicare, that's 38 million Americans, get their prescription drugs through Medicare Part D. These seniors are satisfied with their coverage and are finally receiving the drugs they need at costs they can afford.
Consistently, 80% of beneficiaries report they are satisfied with their current coverage and drug plans. Those include seniors known as dual-eligibles, the poorest seniors eligible for both Medicare and Medicaid, because they are seeing more choices and paying less money for quality care.
My constituent, Nancy Santheson of Roswell, New Mexico, was spending almost $800/month on one drug to treat osteoporosis. She had zero coverage the first year her doctor prescribed it. Once she signed up for her Medicare Part D plan, it went down to only $60/month. This drug is not listed on the Veterans' Administration's national formulary. Had Nancy been dependent on the price negotiations the VA administers and the Democrats have proposed, she would not have had coverage of this drug, a new treatment that has shown great promise in reversing bone loss.
Democrats say they will fill in the donut-hole, a cost estimated to be $450 billion over 10 years, with the savings they claim will incur through government interference in price negotiations. Yet the non- partisan Congressional Budget Office and Centers for Medicare and Medicaid Services have stated that they predict government involvement in price negotiations will not lead to lower costs for taxpayers or seniors.
Seniors want choice, not government controlled access to their vital prescriptions. The leverage needed to negotiate low prices is volume buying and the ability to walk away from a deal the government decides is too expensive. This means the government will have to walk away from a deal with a drug company, and seniors would not have access to those drugs. Negotiating low prices will take priority over getting the most quality, effective drugs in our seniors' medicine cabinets.
But seniors are already getting negotiated discounts. Private insurance plans already have a strong incentive to negotiate low prices for seniors: they want to control their own costs and compete for new enrollees to choose their plan. Premiums for the drug basic benefit are offered at an average of $22/month for seniors in 2007, down from $23 in 2006. This is $15 less than the $37/month coverage premiums were originally projected to cost. In fact, Democrats wanted to set premiums on seniors at a static $35/month, $13 more than average beneficiaries will pay next year. This proves that competition is working and our seniors are receiving benefits cheaper than ever imagined.
Democrats point to the Veterans' Administration as a model for this government price controlled plan. But the latest information from the Centers for Medicare and Medicaid Services suggests that almost 40% of veterans eligible for both VA and Medicare benefits choose to get their prescriptions through Medicare Part D, the plan with more choices.
Time and again, veterans in my district have been frustrated that in order to receive the best benefits, they must get their drugs through an impersonal mail order program. In fact, 76% of veterans' prescriptions are distributed through mail order. And year after year efforts are made to encourage more veterans to get their prescriptions through mail order. Why put seniors in this position when we do not have to? Our seniors will face threats to their ability to purchase drugs from local pharmacies, just as veterans face, and may have to retrieve their drugs through an impersonal mail-order program, not their trusted pharmacist.
Mr. Speaker, our seniors deserve to have access to the drugs they need at the lowest costs possible. They are getting both now, and Democrats want to take that away. We must continue to fight for our seniors and I encourage my colleagues to vote ``no'' on H.R. 4.