Republicans Block Cantwell-Backed Plan to Let Medicare Negotiate Lower Drug Prices for Seniors
Cantwell vows to redouble efforts to lower costs, shed light on drug prices; Current rules keep seniors in the dark when it comes to setting prices
WASHINGTON, DC - Wednesday, after Senate Republicans prevented the full Senate from considering legislation to lower drug prices for seniors, U.S. Senator Maria Cantwell (D-WA) vowed to continue her efforts to help seniors enrolled in the Medicare Prescription Drug Program save money. Cantwell, a member of the Senate Finance Committee, voted last week with a majority of her committee colleagues to approve the bill, which would, for the first time, allow the government to negotiate lower drug prices for Medicare beneficiaries. The legislation, which would also enact new drug pricing transparency requirements, was set for consideration on the Senate floor this week, but was blocked by Republicans.
"Our seniors deserve affordable drug prices and we owe it to them to improve Medicare Part D," said Cantwell. "That means letting the federal government leverage its purchasing power to lower drug prices, and putting in place the strong transparency requirements needed to identify savings opportunities and make sure we pass these savings on to seniors. Standing in the way of commonsense reforms is only going to keep seniors from getting the affordable prices they were promised under this program. Our work is not over and I will do what it takes to shed some light on drug pricing and give Medicare the tools it needs to get these costs down."
Art Boulton, President of the Washington State Alliance for Retired Americans said, "There's little doubt that the prohibition against price negotiation was lobbied into the Medicare drug benefit by the pharmaceutical industry. It had no purpose other than to preserve that industry's high prices and bloated profits, which we taxpayers are subsidizing. I think this all jeopardizes the fiscal integrity of Medicare needlessly, and so it's clear that enacting S.3 is an essential first corrective step toward a Medicare prescription drug law that makes a real difference in our lives."
The Medicare Modernization Act (S. 3), signed into law on December 3, 2003, triggered a new prescription drug plan for Medicare beneficiaries, known as Medicare Part D. The law includes a "non-interference clause" that prohibits the federal government from participating in drug price negotiations, instead leaving pricing decisions solely up to drug manufacturers, pharmacies, and drug plan managers. Last Thursday night, with Cantwell's support, the Finance Committee passed legislation to strike this non-interference clause and give the federal government some of the same negotiating abilities currently used by HMOs and large companies to lower drug prices for their beneficiaries. To improve Part D pricing transparency, the legislation would also require reports to Congress on the drug price concessions and the drug rebates that prescription drug plans receive. Wednesday, Senate Republicans prevented the full Senate from considering the legislation.
Cantwell has said she will also continue working from her seat on the Finance Committee to enact strong transparency requirements to shed light on savings opportunities for Medicare Part D beneficiaries.
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