by Mike Hall, Apr 18, 2007

Republican Senate leaders today blocked a bill that would have allowed Medicare to negotiate with the drug giants for lower prices. In doing so, they came down on the side of big pharmaceutical companies that make billions in profits on which America’s seniors rely—and against consumers who depend upon the Medicare program for affordable medication.

The 55-42 vote fell five votes short of the 60 needed to shut off Senate floor debate and move the bill to a vote on passage. Senate Majority Leader Harry Reid (D-Nev.) voted to end debate, but switched his vote to maintain the right to bring the bill up again.

Calling the policy to bar Medicare from negotiating drug prices “nonsensical,” AFL-CIO President John Sweeney says:

We are extremely disappointed that a minority of senators has blocked legislation that could have allowed Medicare to negotiate for lower drug prices to achieve substantial savings for seniors and for the working families whose taxes support this vital program. Instead, Big Pharma won the day.

Senate Republicans had the strong backing of President Bush, who said if the drug negotiation bill got to his desk, he would veto it.

In January, the Democratic-controlled House passed a bill to require Medicare to negotiate for lower prices for prescription drugs purchased by seniors under the Medicare Part D program. The bill was among many working family measures the House passed in its first 100 days in office this year.

The pharmaceutical industry has joined the Bush White House in vigorously opposing lower Medicare prices through negotiations. After the House passed the bill, drug companies launched a massive lobbying and PR campaign aimed at the Senate. The Pharmaceutical Research and Manufacturers of America (PhRMA) spent hundreds of thousands of dollars on TV spots and newspaper ads to foment against the bill, and its lobbyists swarmed the Capitol as the Senate vote neared. Consumer groups, senior activists and others say the buying power of Medicare would lower prices. They point to the Department of Veterans Affairs and state Medicaid programs that use their buying power to negotiate more affordable drugs than those available to many Medicare beneficiaries. Says Sweeney:

The savings could be used to improve the prescription drug benefit and strengthen Medicare’s fiscal health, while lowering costs and helping to keep more from falling into the benefit’s donut hole.

It’s clear that this is another example of how health care hustlers like Big Pharma are gaming the legislative system and blocking meaningful reform of our broken health care system.

Yesterday, as the Senate was preparing to vote on the bill, Edward Coyle, executive director of the Alliance for Retired Americans, said:

This is the moment of truth for senators and for President Bush: Do they stand with retirees struggling to afford their drugs, or do they stand with the big drug companies who want to keep fleecing American seniors?

Now we know where they stand.

Print This Article | E-Mail This Article | Comments (2)