Seniors Applaud President’s Proposal Allowing Medicare to Negotiate for Lower Rx Drug Prices

Max Richtman, The  Chief Executive Office of The National Committee to Preserve Social Security & Medicare, today hailed the President's proposal to negotiate Medicare prescription Prices,

  “It’s long past time for Congress to acknowledge the hard truth that the sky-rocketing cost of prescription drugs is hurting average Americans and our federal budget, " he said. 

"Medicare spends billions providing Part D drug coverage each year while beneficiaries including seniors, the disabled and their families also face rising out-of-pocket costs and higher premiums.

"All the while, drug makers continue to reap the profits of their price gouging. In his budget, President Obama has again proposed lifting the ban preventing Medicare from negotiating prices with the drug companies. 

"Big Pharma has lobbied hard to keep the ban in place but seniors expect, this time, Congress will do the right thing and finally allow Medicare to negotiate for fair prices.” 

Among the other budget provisions beneficial to seniors include:

• closing the Part D donut hole two years earlier
• additional funding for in-home services
• reforms for overpayments going to private insurers in Medicare Advantage
• a 7.44% increase in administrative funding for the Social Security Administration

However, the President’s budget was not all good news.  Once again, the budget proposes shifting even more healthcare costs to seniors by extending Medicare means-testing to the middle class and increasing out-of-pocket costs such as the home health care co-payment and the Part B deductible.

“The average Medicare beneficiary already spends nearly $4,800 per year in out-of-pocket health care costs with half of all people on Medicare having incomes of less than $24,150. People in Medicare simply can’t afford increased cost-sharing year-after-year," Richtman continued.

"What’s especially worrisome are efforts to portray expanding means-testing in Medicare as impacting only ‘high-income seniors.’  While that may be good political rhetoric the truth is, if passed, further means testing will actually target middle-class individuals," he concluded. 

###

The National Committee, a nonprofit, nonpartisan organization acts in the interests of its membership through advocacy, education, services, grassroots efforts and the leadership of the Board of Directors and professional staff. The work of the National Committee is directed toward developing better-informed citizens and voters.

Ohio’s Senator Brown introduces Medicare Drug Negotiation Bill

October 14, 2015– As more companies buy the rights to old, existing drugs then raise prices overnight, U.S. Sen. Sherrod Brown (D-OH) unveiled a plan to save taxpayer dollars and lower drug prices for seniors. A recent report from the Plain Dealer revealed that price increases have cost the Cleveland Clinic $11 million and University Hospitals $3.6 million – impacting costs for everything from cancer care to emergency medicine.

“Seniors on Medicare face skyrocketing bills for lifesaving drugs that they can’t afford and some insurance companies have stopped covering their drugs altogether,” Brown said. “This isn’t right, and it must stop. That’s why I helped introduce the Medicare Prescription Drug Savings and Choice Act. Giving Medicare the authority to negotiate with pharmaceutical companies will help seniors get the best prices for these critical prescription drugs. Seniors should be able to get drug coverage directly through Medicare – not be forced to buy from a middle man.”

During a press conference in Cleveland today, Brown was joined by Charmaine Szanyi-Hrusch, a retired teacher from North Ridgeville whose prescription drug prices have recently tripled and Ernest Boyd, a pharmacist who discussed how Brown’s legislation would help keep costs under control.

“Senator Brown is attacking an issue that impacts older Americans’ health very directly,” Boyd said. “Pharmacists are having hundreds of patients tell them that they cannot afford the drug or the copayment. It is critical we get this problem under control.”

Brown outlined legislation he cosponsored that would help rein in costs by allowing Medicare to negotiate the best prescription medication prices, lowering drug prices for seniors enrolled in Medicare prescription drug coverage. The Medicare Prescription Drug Savings and Choice Act would help keep costs down for Americans enrolled in Medicare Part D by requiring the Secretary of the U.S. Department of Health and Human Services (HHS) to negotiate the best prescription medication prices for seniors.

Current law only allows for bargaining by pharmaceutical companies and bans Medicare from doing so. The bill would require the HHS Secretary to directly negotiate with drug companies for price discounts for the Medicare Prescription Drug Program, eliminating the “non-interference” clause that expressly bans Medicare from negotiating for the best possible prices even though the government can often negotiate bigger discounts than private insurance companies.