Congress's newest member joins calls for Medicare to negotiate drug prices

Liberal Democrats appear to have a new ally in their calls for Medicare to negotiate drug prices.

In her first question at her first budget committee hearing on Tuesday, Rep. Suzanne Bonamici (D-Ore.) asked the Medicare actuary how much the federal government could save if Medicare could use its market clout to negotiate lower drug prices, such as the Department of Veterans Affairs does. The 2003 law that created the Medicare Part D prescription drug program prohibits such negotiations.

"The VA's drug prices are up to 48 percent lower than Part D prices," Bonamici said. "So as Congress looks for ways to address cost-containment while preserving the Medicare guarantee for seniors … should we be looking at providing the Medicare program the authority to negotiate drug prices?"

The drug industry says price negotiations would hurt competition, cost jobs and threaten the success of the Part D program. And it points out that the VA is able to achieve its savings only because it limits the number of drugs available to beneficiaries.

Bonamici was sworn in Feb. 7 after winning a special election to replace Rep. David Wu, who resigned in August in the wake of a sex scandal.

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