Democrats - A Chance to Change Drug Costs

Democrats Have Chance to Make Changes in Drug Costs

Shares of most major drug makers and health insurers fell last week on concerns over tougher regulations on prescriptions. Democrats have said many of these firms have reaped huge sales and profits from the new drug benefit. This is money that could have been passed on to taxpayers in terms of savings or even to seniors in terms of better drug benefits.

The law creating the Medicare Part D drug benefit, added in 2003, did not allow the Medicare program to negotiate prices directly with manufacturers, as the U.S. Department of Veterans Affairs does. The VA has long been known for winning price concessions from drug companies with direct negotiations.

A nonpartisan study has shown costs are more than 10 percent higher by having private insurers involved in the benefit coverage instead of having the government manage the program on its own.

The Democratic Party's takeover shifts the policy landscape for health-care providers. The Democrats will put Medicare Part D 'in play' by proposing the removal of the clause called the Medicare Modernization Act of 2003 that prohibits the federal government from negotiating drug prices directly with manufacturers.

How do the Drug Companies and Campaign Recipients feel about this?

Not to be underestimated, however, is the influence of the pharmaceutical industry, which contributes heavily to campaigns of both parties. And President Bush, a Republican, would have the authority to veto any legislation while his appointees, who run the Centers for Medicare & Medicaid Services can stall on employing provisions for negotiating directly with drug makers.
At the very least, Democrats have gained the power to hold hearings to discuss the profits that drug makers, health insurers and pharmacy benefit firms have made since the Medicare benefit became widely available to seniors this year.

The drug industry also argues that regulating drug prices would hurt consumers and patients because it would harm drug makers' budgets for research and development. Pharmaceutical companies also say price controls could lead to supply shortages.

America's pharmaceutical research companies lead the world in discovering new cures and treatments for patients. The new drugs that save patients lives are a result of the billions of dollars and years of research and development that pharmaceutical companies invest.

XLPharmacy Canada