[Ip-health] Senators Reject Measure to Cut Medicare Drug Prices & Reaffirm Pharma Healthcare Deal

Fri Sep 25 17:18:14 2009

http://blogs.wsj.com/washwire/2009/09/24/senators-reject-measure-to-cut-med=
icare-drug-prices/

Senators Reject Measure to Cut Medicare Drug Prices
Wall Street Journal "Washington Wire" Blog
Janet Adamy reports on health care overhaul legislation.

Score one for the drug companies.

The Senate Finance Committee voted down an amendment to its sweeping
health bill that would have allowed the government to pay drug makers
lower prices for certain senior citizens=92 prescriptions.

Today=92s vote helps protect an agreement the White House and Senate
Finance Committee Chairman Max Baucus of Montana struck with the
pharmaceutical industry in June. The pact pegged drug companies=92
contribution to the health overhaul at $80 billion over a decade.

The amendment, proposed by Florida Democrat Bill Nelson, would have
allowed the government to pay drug makers a lower price when it buys
prescriptions for people who are eligible for the Medicare and Medicaid
government insurance programs.

Currently, the government must pay the higher rate that applies to
Medicare prescriptions instead of the lower rate offered through
Medicaid, the state-federal program for the poor. Nelson estimated the
change would raise $106 billion over 10 years. He argued the money could
be used to close a gap in Medicare Part D prescription drug coverage
that forces seniors to pay thousands of dollars in out of pocket costs
on certain medicines and would still leave $50 billion to spend elsewhere.

But some Democrats countered that the change would break what they
described as a pact with drug makers to limit their contributions to the
health overhaul at $80 billion over 10 years, since it would result in
lower revenue for the industry. =93That=92s just not fair,=94 said Sen. Tho=
mas
Carper of Delaware.

The committee rejected the amendment, 13-10. Carper, Baucus and Sen.
Robert Menendez of New Jersey joined the 10 Republicans in voting
against it.

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--
Sarah Rimmington
Attorney
Essential Action, Access to Medicines Project
Washington, DC
Tel: +1 (202) 387-8030
Cell: +1 (202) 422-2687
www.essentialaction.org/access/

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