ENGEL: REPUBLICAN PRESCRIPTION DRUG PLAN FLAWED
Congressman Eliot Engel (D-NY) has condemned the Republican Medicare Modernization Act following the report that the price of brand name pharmaceuticals went up 3.9% this year, four times the general inflation rate (New York Times, June 21, 2006). "This is further evidence that this flawed Medicare Modernization Act that passed through Congress during a late night, arm twisting vote is not helping our constituents who are struggling to purchase their prescription medications. I joined with a number of House Democrats to push for Medicare to be allowed to negotiate with drug companies for lower prices. Unfortunately, the Republicans blocked our efforts and made it illegal for Medicare to buy in bulk as the Departments of Defense and Veterans Affairs do successfully. Instead of saving money for our constituents, this Republican Congress collected millions of dollars in campaign contributions from the drug industry. This is shameful."
According to Families USA, the Department of Veterans Affairs is paying 46 percent less for the most popular brand-name drugs than the average prices posted by the Medicare plans for the same drugs. Price increases over the last year on some of the most popular brand name medications were very steep: the sleeping pill Ambien was up 13.3% and the best selling cholesterol lowering drug Lipitor was up between 4.7-6.5%, depending on the dosage.
Engel, a Senior Member of the House Energy and Commerce Committee, which has jurisdiction over this legislation, was an outspoken advocate of Medicare's right to negotiate lower pharmaceutical prices. "I stood with the House Democrats, both in committee and on the House floor, to try to include Medicare bulk purchasing as part of the package. Negotiation with prescription drug companies is a proven tool used by the Department of Veterans Affairs and the Department of Defense to reduce costs. I am saddened to learn of record increases with no relief in sight for our seniors. It is my hope that the Republican leadership takes action and does the right thing for our seniors with a sensible Medicare plan, not a handout for special interests that leave our constituents footing the bill," concluded Engel.
http://engel.house.gov/index.cfm?ContentID=805&ParentID=0&SectionID=7&SectionTree=7&lnk=b&ItemID=802