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The arrival of the New Year signals the beginning of a new session of Congress, but we
also face many on-going issues including the continued need to ensure that seniors can
afford the high price of their medicines. As millions of Medicare beneficiaries in
Nevada and across the nation struggle to understand the burdensome prescription drug
plan now being offered through Medicare, my Democratic colleagues and I continue to call
for changes in this flawed program. Among the most important of these
proposals is one to provide Medicare with the authority to negotiate for lower drug prices
on behalf of all those beneficiaries who enroll in prescription drug plan authorized through
Medicare. The GOP prescription drug bill I opposed was special-interest
legislation that was designed solely to meet the interests of large drug companies and
private insurers. One of the most outrageous special-interest provisions included in the
GOP bill was one that explicitly prohibits Medicare from negotiating with drug companies
for lower prices. Congress must require Medicare to negotiate lower drug
pricesas the VA does nowfor beneficiaries in the Medicare-sponsored plan.
Currently, the only entity in this country that cannot bargain for lower group drug prices
is Medicare. The states, Fortune 500 companies, large pharmacy chains, and the
Department of Veterans Affairs (VA) use their bargaining clout to obtain lower drug prices
for the patients they represent. During debate over the 2003 prescription drug
bill, Republicans claimed private insurers would be able to reduce drug prices more than
the federal government. However, a November 2005 study by the Democratic staff of the
Government Reform Committee shows that the Republicans were wrong. The
report examined the deep discounts that the Veterans' Administration has been able to
obtain via negotiation with drug companies and highlights the importance of giving
Medicare the authority to negotiate for lower drug prices. The study looked at the prices
for the ten highest selling drugs used by Medicare beneficiaries. It found that the drug
prices offered by ten leading new private drug plans under the Medicare drug program are
more than 80 percent higher than the prices negotiated by the VA. This year I
hope Congress will finally stand-up for America's seniors and allow Medicare to negotiate
lower drug prices by repealing the misguided prohibition against bargaining that is now in
place.
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