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Seventy-eight Dem lawmakers urge supercommittee to allow Medicare to negotiate drug prices
Seventy-eight House Democrats have signed on to a letter urging the deficit-cutting supercommittee to allow Medicare to negotiate prices for prescription drugs.
The government was precluded from using its market heft to negotiate for lower drug prices in the Republican-sponsored legislation that created the Part D prescription drug program in 2003, but the issue has gained newfound traction as lawmakers struggle to pare down the nation's debt. A 2008 report by House Democrats found that price negotiations could save the government $156 billion over 10 years - beneficiaries would also save $27 billion - but Republicans and the industry say it would drive companies out of business or force them to raise prices elsewhere.
"We have the opportunity to dramatically curb the costs, and at a time of tough budgets, for both families and the government, we simply cannot afford to leave these real savings on the table," reads the letter. "We strongly encourage you to include this reform in the Committee's legislation to reduce the national debt."
President Obama for his part has endorsed a more modest proposal that would extend drug rebates offered in the Medicaid program to low-income people on Medicare. The proposal has been estimated to save $135 billion over 10 years.
Former Sen. Norm Coleman's (R-Minn.) American Action Network is launching a $1.6 million mail and phone campaign in 56 districts and states lambasting the rebate proposal.
"President Obama and liberals in Washington are trying to shift the burden of deficit reduction to seniors through a proposal to introduce radical, Medicaid-style rebates to the Medicare Part D program," network president Brian Walsh said in a statement announcing the campaign. "This plan would result in higher premiums and higher prescription drug costs for millions of older Americans. The American Action Network wants to praise principled Members of Congress who are opposing this radical plan to balance the budget on the backs of America's seniors."
This post was updated at 4:15 p.m. after one additional member signed on to the letter
