Carney Seeks To Lower Medicare Drug Prices

Press Release

Congressman Chris Carney is an original co-sponsor of a bill introduced today that aims to cut Medicare prescription drug costs both for seniors and taxpayers. The Medicare Prescription Drug Price Negotiation Act of 2010, introduced by Congressman Peter Welch, would require the Secretary of Health and Human Services to negotiate prescription drug prices on behalf of Medicare Part D beneficiaries for the first time, potentially saving $156 billion over 10 years.

"Seniors and taxpayers should benefit from the government's purchasing power, a move that would save billions of dollars," Congressman Carney said. "This is a commonsense solution that would help our seniors during this tough economic climate and save taxpayers billions."

The Medicare Part D program, which benefits 28 million seniors, accounted for more than $50 billion worth of prescription drugs in 2009. Yet the federal government has been barred from negotiating rates with the pharmaceutical industry since the program's inception in 2004.

There is clear evidence that negotiating rates will save money. The Department of Veterans Affairs has significantly reduced costs through rate negotiation. A Families USA report showed that the top five Medicare Part D insurers charged prices 58 percent higher than the VA for 20 commonly prescribed drugs.

The legislation has been co-sponsored by 61 members of the House.

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