Medicare Prescription Drug Price Negotiation Act of 2007

MEDICARE PRESCRIPTION DRUG PRICE NEGOTIATION ACT OF 2007 -- (House of Representatives - January 12, 2007)

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Mr. BLUMENAUER. Mr. Speaker, I appreciate the gentleman's courtesy.

The Medicare prescription drug program was controversial from the start in part because of the notorious way it was strong armed through the House in the middle of the night after holding the voting machines opened for hours. Our new rules will prevent that.

Part of the controversy was the huge cost of a new unfunded entitlement with generous, probably unnecessary, subsidies and a prohibition on bargaining for a better price.

This better price is important because total drug costs for seniors, premiums and drugs, are going up. A review of drug company balance sheets where advertising and profit dwarfs basic research shows room to lower prices without undue stress on their research budget or their profit.

Competition and bargaining power combined with the Secretary's bully pulpit can probably save billions of dollars for seniors, hundreds, perhaps thousands, for individuals because these costs, remember, for most seniors are still going up.

Our action today is just a first step, a signal and a tool. The program is not set in stone. We are committed to the best treatment for our seniors and all taxpayers. This is a tool for the administration that, if they will use it, can save money and improve the program. It is a start on a longer and critical process to provide cost-effective quality health care for our seniors and ultimately for all Americans.

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