January 12, 2007
Contact: Robin Winchell (202) 225-4031
WASHINGTON,
DC- U.S. Rep. Charlie
Melancon voted today to cut the cost of health care and improve access to
medicines by requiring the Secretary of Health and Human Services to negotiate
with drug companies for lower drug prices for Medicare beneficiaries. The
current Medicare Prescription Drug law prohibits HHS from conducting such
cost-reducing negotiations. The House passed H. R. 4, Requiring the
Department of Health and Human Services to Negotiate for Lower Prescription
Drug Costs, this afternoon by a vote of 255 to 170.
"Even with the new Medicare Part D program, the cost of
prescription drugs is crushing many seniors trying to get by on fixed incomes,"
Rep. Melancon said. "Seniors shouldn't have to choose between paying
their rent, buying groceries, or getting the prescription drugs they need to
survive and have a decent quality of life. I believe this bill is a solid
first step in improving Medicare Part D and I hope that we can work with the
Senate and the President to reach a final compromise that will significantly
lower prescription drug prices for seniors."
H. R. 4 will repeal the part of the current law that
prohibits the Secretary of Health and Human Services (HHS) from negotiating
with drug companies for lower prices for those enrolled in Medicare drug
plans. The bill would instead require the Secretary to conduct such
cost-saving negotiations. In conducting these negotiations, the HHS
Secretary may not restrict access to certain medicines in Medicare, for example
by requiring a particular formulary (i.e., a list of covered drugs) to be used
by Medicare drug plans. The bill also clarifies that Medicare Part D drug plans
are permitted to obtain discounts or lower prices for covered prescription
drugs below the price negotiated by the HHS Secretary. Negotiated prices will
take effect starting in January 2008.
To ensure that Congress is able to closely monitor the
Administration's progress in this effort, the bill requires timely updates from
the Administration on its progress. Specifically, not later than June 1,
2007, and every six months thereafter, the bill requires the HHS Secretary to
submit to the Committees on Ways and Means, Energy and Commerce, and Oversight
and Government Reform in the House and the Committee on Finance in the Senate a
report on the negotiations conducted by the Secretary and on the prices and any
price discounts achieved by the Secretary as a result of such
negotiations. Rep. Melancon serves on the House Energy and Commerce
Committee and will be reviewing the Secretary's progress reports.
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Contact: Robin Winchell (202) 225-4031
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