It’s the High Rx Drug Prices, Stupid!

Americans United for Change responds to new CMS analysis crediting Part D for a meager decline in national spending on prescription drugs: "So what -- Rx drug prices could be a lot lower for seniors if Medicare were allowed to negotiate with the big drug companies."

 

Washington D.C. - On the heels of the Centers for Medicare and Medicaid Services (CMS) analysis published today in Health Affairs crediting Medicare Part D for lower national spending growth on prescription drugs, the Change America Now! campaign called the CMS numbers ‘irrelevant' and a distraction from the fact that prescription drug prices could be significantly lower if Medicare were allowed to negotiate cheaper drugs directly with the big drug companies, just as the Veterans Administration had done successfully for America's veterans for years.  Americans United for Change is a proud partner of the Change America Now! campaign -a national coalition of nearly 40 organizations in 31 states formed to help pass into law the economic elements of the ‘100 Hour' legislative agenda as outlined by House Speaker Nancy Pelosi (D-CA) including, H.R.4 - legislation which requires the Secretary of Health and Human Services to negotiate for lower prescription drug prices with the pharmaceutical industry.  The bipartisan legislation passed the U.S. House last month by a 255-170 margin and is now pending in the U.S. Senate.  A staggering 87 percent of Americans supported allowing the government to use its bulk purchasing power, according to a new poll conducted by the AARP. 

 

"Part D was written by and for the big drug companies, and the Bush administration is so eager to protect their interests that they'll trumpet any numbers they think will make the costly, confusing, corrupt prescription drug program look good - no matter how irrelevant," said Jeremy Funk, Press Secretary for Americans United for Change and spokesman for the Change America Now! campaign. "The news of slightly slower spending growth under Part D is all well and good, but this means nothing to the seniors who still shoulder the burden of exorbitantly high drug costs every day.  This is nothing but a distraction from the real issue: prescription drug prices for our seniors would be much lower if Medicare was allowed to negotiate cheaper drugs for seniors.  The fact is, the lowest Part D plan drug prices are significantly higher than the prices negotiated by the Veterans Administration for our nation's veterans."

 

According to a January 9, 2007 report conducted by Families USA, entitled ‘No Bargain: Medicare Drug Plans Deliver High Prices:'

 

"Allowing Medicare to use its bulk purchasing power to negotiate lower prices with the pharmaceutical industry, just as the VA does for seniors, could save America's seniors an estimated $50 billion, according to a recent study by the Center for Economic and Policy Research," added Funk.  "And while the Bush administration is patting itself on the back over lower spending growth, it's also interesting to note that the Bush drug plan was passed back in 2003 with an expected cost of $400 billion while the CMS actuaries now project the 10 year cost at over $1 trillion.  But you won't hear any of these numbers out the President or his allies in Congress who make no apologies for putting the special interests ahead of the interests of America's seniors." 

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