Congressman Sander Levin

Lowering the cost of Prescription Drugs

The past fifty years have seen a revolution in prescription medications. Not only do we now have access to a growing number of traditional chemical drugs, we are also seeing a rise in “biologics”, drugs made from living organisms or biologic processes. These drugs are fighting such diseases as cancer, multiple sclerosis, and Parkinson’s disease.
Prescription drugs and biologics can save lives and improve patients’ quality of life. But to do so they must be affordable to the people who need them.

For this reason, I am working with my colleagues in the House to reduce the cost of prescription drugs, and provide assistance to people who cannot afford their medications. Biologic drugs in particular can cost patients exorbitant amounts, in some cases more than $15,000 a year. I am committed to working to bring down the costs of these cutting-edge therapies for patients with cancer, multiple sclerosis, arthritis and other diseases. In 1984, Congress established a process for the approval of generic chemical drugs, saving consumers millions of dollars a year in drug costs. However, because biologic drugs came into widespread use after the passage of this legislation, there is no equivalent generics process for this class of medicines. One of the reasons the costs for biologics is so high is that patients have no choice but to purchase the expensive brand-name biologic drugs. I believe Congress must act to provide a process for approving generic biologics that will be available at lower cost to consumers.

With regard to Medicare, I believe that the program should cover prescription drugs in the same way that it covers physician visits and hospital stays, with full coverage and limited co-pays. Unfortunately, in 2003 the President and a Republican-led Congress took a different approach and established a program in which private plans contract with the government to provide prescription drug coverage to seniors. I believe this approach is flawed. For example, the current Medicare Prescription Drug program has created a “donut hole” in which seniors have to pay at least $3,850 in out of pocket costs to regain their drug coverage. The “donut hole” is the part of the program where Medicare beneficiaries are faced with a gap in coverage. In the donut hole, seniors continue paying monthly insurance fees but stop receiving financial coverage for their drugs.

In the short-run I support efforts to fix the major flaws of the current law. I favor legislation to give seniors more time to choose a plan and enroll, and to give them an opportunity to change plans if necessary. I am also a cosponsor of The Prescription Coverage Now Act of 2007 [H.R. 1536] to assist beneficiaries who qualify with the cost of their prescription drugs. I also strongly support legislation to grant Medicare the ability to negotiate lower drug prices with pharmaceutical manufacturers on behalf of Medicare beneficiaries. The Medicare Prescription Drug Price Negotiation Act of 2007 [H.R. 4] was approved in the House with a bi-partisan vote of 255 to 170 and is pending in the Senate.

If you are a Medicare beneficiary and are having problems with the program, please see my Medicare casework page for more information or contact my District Office at (586) 498 - 7122 with any questions or concerns you may have.