Michaud Introduces Bill to Lower Prescription Drug Costs

Press Release

Bill receives support from Maine's health care community

Today, Congressman Mike Michaud introduced the America Rx Act, which would establish a prescription drug plan for individuals who do not already have adequate coverage. Under the new plan, the federal government would negotiate rebates with prescription drug manufacturers for low income individuals who do not have access to other prescription drug discounts. Participating pharmacies would set discount prices using the manufacturers' rebates and individuals would see these discounts immediately when they go to their local participating pharmacy.

"Negotiation works," said Michaud, "The VA already uses this approach in providing affordable medications to our nation's veterans. It does not cost the American taxpayer one dime and can actually help lower the cost to government health programs, because increasing access to affordable medications can reduce hospital visits. This would have the affect of not only increasing public health, but also reducing our federal deficits."

The America Rx Program will build upon the recently enacted health insurance reform law. The program would offer low-income individuals the opportunity to access prescription drug discounts before the health insurance exchanges are up and running in 2014. And starting in 2014, individuals would be screened for eligibility for the America Rx program in the new health insurance exchanges. States would be allowed to determine eligibility for the program, much like how states currently determine Medicaid eligibility.

"Each day, millions of Americans have to choose between life saving medicines and putting food on the table because they lack coverage for prescription drugs. The federal government should be able to negotiate for more affordable prices for those most in need."

Letters of support for the America Rx Act from the Maine Medical Association, Home Care & Hospice Alliance of Maine, Maine Hospital Association, Maine Health Care Association and the Maine Primary Care Association can be found here.

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