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U.S. Senator
Member: Finance, Agriculture, Energy, Ethics and Aging Committees |
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For Immediate
Release April 12, 2007 |
CONTACT: Cody Wertz – Comm.
Director |
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WASHINGTON, D.C. – American taxpayers and seniors pay some of the highest prescription drug costs in the world because current law bars the Secretary of Health and Human Services from negotiating with pharmaceutical firms for lower prescription drug prices on behalf of beneficiaries participating in the Medicare Part D Drug Program. This evening, in a meeting of the Senate Finance Committee to mark up the Medicare Prescription Drug Price Negotiation Act of 2007 (S. 3), United States Senator Ken Salazar voted to remove this provision and thereby authorize the Secretary of Health and Human Services to negotiate lower prescription drug prices on behalf of Medicare through bulk purchasing. The proposal was approved by the Committee and now goes to the full Senate for consideration. “This is an important first step to real savings for the 437,000 Coloradans relying on Medicare to fill their prescriptions,” said Senator Salazar. “Saving taxpayers and seniors money shouldn’t just be an option, it should be required. I support going beyond this bill and requiring the Secretary to undertake negotiations for lower drug costs.” Right now, the Department of Veterans Affairs (VA) is allowed to negotiate to obtain the lowest prices for America’s veterans, and the results for taxpayers speak for themselves. According to data by Families USA released earlier this year, the lowest cost of each of the top 20 pharmaceuticals prescribed to seniors under Medicare Part D was always higher than the lowest cost paid by the VA, by an average of 58 percent. For example: * Zocor: For a 20mg dose of this popular cholesterol lowering medicine, the lowest price the VA paid for a year’s treatment was $127.44. In comparison, the lowest Medicare Part D price was $1,485.96—a difference of $1,358.52, or 1,066 percent; * Fosamax: For a 70 mg dose of this osteoporosis medicine, the lowest price the VA paid for a year’s treatment was $250.32. In comparison, the lowest Medicare Part D price was $763.56—a difference of $513.24, or 205 percent; and * Celebrex: For a 200 mg dose of this arthritis medicine, the lowest price paid by the VA for a year’s treatment was $632.09, while the lowest Medicare Part D price was $946.44—a difference of $314.35, or 50 percent. During this evening’s Finance Committee hearing, Senator Salazar also highlighted two important issues for rural Medicare beneficiaries: * Requiring Pharmacies Be Paid Promptly - Within 14 Days. Under Medicare, prescription drug plans can sometimes take more than two months to reimburse pharmacies, putting them at serious financial risk. Senator Salazar’s amendment will help independent pharmacies and those dependent on Medicare customers keep their businesses open, many of which are in rural areas, and keep drug access available for Medicare recipients. * A Study of Pharmacy Dispensing Fees by HHS. Currently, Medicaid pays pharmacists an average dispensing fee of about $4.50 per prescription. However, the actual cost to US pharmacies of dispensing medication is more than double that amount, making it not cost-effective for many pharmacies with small customer bases, such as those in rural areas, to fill Medicare prescriptions. “In the next decade, it is estimated that one in four Medicare recipients will be living in rural areas, many of which are only served independent pharmacies,” said Senator Salazar. “We must act now to protect these small businesses before rural Medicare recipients find themselves having to travel many miles just to fill a prescription.” In addition, Senator Salazar drew the Committee’s attention to eliminating unnecessary Medicare Part-D enrollment bureaucracy. Right now, a bureaucratic hurdle for nursing home patients prevents nursing home administrators to assist residents in selecting a Medicare drug plan, despite the confusing nature of the Medicare drug plan applications, their own expertise in health care and their knowledge of the patient’s specific needs.
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