Rep. John Sarbanes (D-Md.) says that the government should use its “terrific bargaining power” when dealing with pharmaceutical companies in order to lower drug costs for Americans. (0:26)
By Learned Foote – Talk Radio News Service
A group of Democratic Congressmen introduced proposals on Thursday known as the CARE (Cut Americans’ Rx Expenses) Package. This package would seek to reduce the costs of prescription drugs, and thereby create savings worth $190 billion dollars that could be applied to health care reform.
The package has three amendments which the Congressmen will seek to insert into the legislation. Rep. Jane Harman (D-Calif.) said that Chairman of the House Energy and Commerce Committee Henry Waxman (D-Calif.) agreed to support these proposals during mark-up.
Rep. Peter Welch (D-Vt.) said that pharmaceutical companies “create life-extending, pain-relieving, life-saving drugs,” but also “charge very high prices and have an excessive control over the marketplace.”
Rep. Harman said that the first proposal seeks to reverse a 2003 law that passed 220-215, which prohibits the Health and Human Services Secretary from bargaining for lower prices for pharmaceuticals for Medicare D patients. She said the law represents a “poignant example of Congress’ failure to take meaningful action to rein in drug costs.”
According to Rep. Castor, the bill’s second amendment allows a potential public option to “negotiate prices” and to establish a formulary. A prepared press release said that such a formulary would mean that “families who choose the public option are guaranteed the lowest cost for prescriptions.”
Rep. Betty Sutton said that the final provision “will require…drug manufacturers to pay a supplemental rebate when name-brand drugs exceed the current rate of inflation.” She said the companies “won’t have to pay these rebates if they decide not to jack up their drug prices above the rate of inflation.” She added that this proposal will incentivize drug companies to “show reasonable restraint, thereby making prescription drug prices more affordable.”
Rep. Kathy Castor (D-Fl.) noted that Americans pay higher prices for drugs than do consumers in other countries. Rep. John Sarbanes (D-Md.) said that the government has “terrific bargaining power.” He wondered “why shouldn’t the government in dealing with the pharmaceutical industry be able to go into the marketplace and use that bargaining power on behalf of seniors, on behalf of working families across the country?”
The members of Congress proposing this legislation include Reps. Jane Harman (D-Calif.), Anthony Weiner (D-N.Y.), Kathy Castor (D-Fla.), John Sarbanes (D-Md.), Betty Sutton (D-Ohio), and Peter Welch (D-Vt.).
U.S. Senator Amy Klobuchar (D-Minn.) says that after Ovation Pharmaceuticals acquired the rights to the drug Indocin from Merck, they quickly increased the price by more than 18 times. Klobuchar points out that eventhough it is an American company, the price they charge is 44 times higher than what they sell it for in Canada. Klobuchar says there is no real justification for the huge price disparity. (1:04)
Mustargen treats rare cancers, Cosmegen treats kidney disease and Matulane treats Hogdkins lymphoma. These miracle drugs have one thing in common. According to calculation from the Pharmaceutical Reseach in Management and Economics (PRIME) Institute, the prices of these drugs have seen increases as high as 8,000 percent. (more…)
