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Time for Negotiation
December 14, 2006 • Volume 6, Issue 49As we near the end of Part D’s first year, the Bush administration would like us all to ignore logic and common sense in order to believe that plans are securing low drug prices for people with Medicare. Through market competition, the administration claims, the Medicare private drug plans are proving to be more successful at negotiating down drug costs than the federal government would be.
We are also told that letting the government step in to bargain will result in doom and disaster. Health and Human Services (HHS) Secretary Michael Leavitt declared, ominously, that lifting the prohibition of government negotiation would lead directly to socialized medicine. The pharmaceutical industry, reaping in huge profits this year due to Part D, is also launching a propaganda campaign to scare consumers into thinking government price negotiations will halt research and development of life-saving drugs.
Luckily, the American public isn’t buying the spin.
A newly released poll conducted by the Kaiser Family Foundation and the Harvard School of Public Health finds that the vast majority of Americans support allowing the government to negotiate Medicare drug prices. That support spans the political spectrum: 92 percent of people who identify themselves as Democrats favor allowing government negotiation, as do 85 percent of Independents and 74 percent of Republicans.
Part D plans are simply passing increases in drug prices directly on to members while many people with Medicare struggle to afford their medicines. And they have been unable to match the lower drug prices state Medicaid programs used to get for people with both Medicare and Medicaid, giving the pharmaceutical industry billions of dollars in extra profit this year. People of all political stripes recognize that something needs to change—and soon.
By using the collective clout of 43 million members, Medicare can obtain drug prices that actually benefit older adults and people with disabilities, rather than the drug industry.
Repealing the ban on Medicare drug price negotiations is one of the top issues on the agenda announced by House Speaker-elect Nancy Pelosi for the first 100 legislative hours of the new Congress.
Allowing the government to negotiate lower drug prices for people with Medicare will be a tremendous first step, but Congress should not stop there. The ultimate fix is what our legislators should have implemented in the first place: a drug benefit provided directly through Medicare.
Unlike the current set-up, a Medicare-administered drug benefit would provide reliable, affordable coverage for people with Medicare. Instead of senseless coverage gaps, out-of-control drug costs and confusing formulary changes, older adults and people with disabilities would finally have the dependable drug coverage they need.
Medical Record
“Before enrolling in our Part D plan this year, my wife and I checked the formulary to be sure our drugs were covered. But two months later, I was denied coverage of Byetta for my diabetes and my wife was denied coverage of a medication for her rheumatoid arthritis. Now we are told that our monthly premium next year will be twice that of 2006, and our co-pays will likewise be increased. My fervent wish is that every member of Congress be forced to cope with the outrageously stupid, frustrating and costly system they cheerfully impose upon us seniors” (Story submitted to the Part D Monitoring Project, Medicare Rights Center, December 8, 2006).
“While there is debate in Washington about whether and how to do it, substantial majorities of Democrats (92%), Independents (85%), and Republicans (74%) support allowing the government to negotiate drug prices under Medicare (85% overall, including 65% strongly and 20% somewhat favoring it)” (“The Public’s Health Care Agenda for the New Congress and Presidential Campaign,” Kaiser Family Foundation, December 2006).
“In the first 100 hours...We will make health care affordable for all Americans, and we will begin by fixing the Medicare prescription drug program, putting seniors first by negotiating lower drug prices” (“100 Hours,” Nancy Pelosi, House Democratic Leader).
“Price trends show that the Part D plans are not exerting downward price pressure on drug manufacturers. In fact, since the start of program enrollment, prices for the Part D plans have increased much more frequently than they have decreased or remained constant. What’s more, Part D plans appear to be simply passing manufacturer price increases along to Medicare consumers. In addition, Part D plan prices are significantly higher than the prices available through the VA [Department of Veterans Affairs]: For each of the 20 drugs most frequently prescribed to seniors, the lowest price available through any Part D plan was higher than the lowest price negotiated by the VA. This performance hardly demonstrates the strong negotiating leverage the Administration claimed the private plans would exert” (“Big Dollars, Little Sense: Rising Medicare Prescription Drug Prices,” Families USA, June 2006).
***** The Medicare Rights Center (MRC) needs to hear about all the problems with the Medicare Part D benefit, whether they happen to you or someone in your community. With this information, we will be armed with the needed evidence to push for a Medicare-administered drug benefit.
Fast Relief: Part D Monitoring Project
Submit your story at www.medicarerights.org/partdstories.html
*****
The Louder Our Voice, the Stronger Our Message Asclepios — named for the Greek and Roman god of medicine who, acclaimed for his healing abilities, was at one point the most worshipped god in Greece—is a weekly e-newsletter designed to keep you up-to-date with Medicare program and policy issues, and advance advocacy strategies to address them. Please help build awareness of key Medicare consumer issues by forwarding this action alert to your friends and encouraging them to subscribe today.
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