SOUTH BEND – The health care system needs reform but U.S. Rep. Joe Donnelly, D-Granger, says it shouldn’t be through a government-run program.

Insurance companies currently have a lot of control in the system and the playing field needs to be more level with patients, Donnelly said in a phone interview with The Tribune on Wednesday.

He said he supports the re-importation of prescription drugs from Canada to help senior citizens save money.

Donnelly said Medicare Part D must be changed to remove the coverage gap, or the “doughnut hole.” The hole lies between $2,250 and $5,726 in total prescription drug spending, where a participant has to pay for all other drug costs until they reach the out-of-pocket threshold.

If Congress could negotiate drug prices with drug companies, prescription drug prices would drop, Donnelly said, shrinking the doughnut hole and helping senior citizens save money. He said seniors eligible for the Veterans Affairs program are already paying 42 percent less on their drugs, because the VA negotiates prices with pharmaceutical companies. Donnelly said he supported renewal of the national State Children’s Health Insurance Program, which would have provided health care for 98,000 children in Indiana. SCHIP was enacted in 1997 to last for 10 years and expired last September.

President Bush vetoed attempts by Congress to fully reauthorize SCHIP, Donnelly said. The president also threatened to veto legislation allowing the government to negotiate prices with drug companies last year. Donnelly said true health care reform will take bipartisan support.

“We need some presidential leadership on the issue from both sides of the aisle,” he said.

Earlier this week, Republican congressional candidate Luke Puckett said he was in favor of the reform to reduce the number of frivolous medical practice lawsuits. He suggested a “loser pay” system, which is used in some European countries, where the loser in a lawsuit pays the legal costs of the winner.

“Loser pay denies access to our legal system for those who can least afford it,” Donnelly said. Donnelly said he supports the limits on liability that are in place for Indiana, which caps claims and liability.  A patient compensation fund covers awards in excess of $250,000. Donnelly said Indiana has a good system and supports liability limits.