| WASHINGTON, D.C. – U.S. Representative Marion Berry (D-AR, 1st) renewed his push today for a Medicare Prescription Drug Benefit with price negotiation after reviewing two reports released this week by the groups AARP and Families USA. The reports show significant price increases in the prescription drugs most commonly used by seniors since the enactment of the Bush Administration's Prescription Drug Benefit.
"These reports prove what we knew all along – this new prescription drug benefit does nothing to lower the price of drugs for seniors," said Congressman Berry. "Instead of giving insurance and pharmaceutical companies complete control over drug prices, we need to give Medicare the power to negotiate for our seniors. Healthy competition is the answer out of this mess."
The first report, released by AARP, found that pharmaceutical companies charged 3.9% more for brand-name prescription drugs during the first quarter of this year. That increase is four times the rate of inflation during the first three months of the year and the largest quarterly price increase in six years. According to the study, older Americans who take four prescription medicines daily saw their monthly prescription drug costs rise by nearly $240 over the 12 month period ending on March 31, 2006.
Families USA echoed these findings in a similar report, showing that the median price for the top 20 prescription drugs used by seniors rose an average of 3.7% from mid-November 2005 to mid-April 2006. Those same 20 drugs were offered by the Veterans Administration (VA) at prices 46% below the lowest price charged by any Medicare Part D plan. The VA is able to provide prescription drugs at significantly lower rates because the agency has the power to negotiate for lower drug prices on behalf of all the veterans enrolled in the program.
"The Veterans Administration provides a perfect model on how to run an effective prescription drug program, yet our Republican leaders refuse to pay attention," said Congressman Berry. "This stubbornness is costing seniors and taxpayers billions of dollars in avoidable prescription drug costs."
Congressman Berry has introduced legislation to reform the Bush Administration's prescription drug benefit by establishing a Medicare-administered drug plan. His bill, the Medicare Prescription Drug Savings and Choice Act, would give seniors an option they can trust and require the Secretary of Health and Human Services to negotiate for lower drug prices on behalf of all the seniors enrolled. Experts estimate that Congressman Berry's bill would save at least $40 billion a year if half of all beneficiaries enrolled in the Medicare-administered plan.
Over 120 members of the U.S. House of Representatives have signed on to Congressman Berry's Medicare Prescription Drug Savings and Choice Act including key members of the Democratic Leadership and the House Energy and Commerce Committee which oversees Medicare reform. |
