Medicare Prescription Drug Price Negotiation Act of 2007

MEDICARE PRESCRIPTION DRUG PRICE NEGOTIATION ACT OF 2007

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Mr. THOMPSON of California. Mr. Speaker, I rise today in support of H.R. 4, and I am not here to claim that it will instantly bring seniors huge discounts on their drugs, but this legislation is an important first step, because it gives the Secretary one more tool to maximize savings for seniors and value for taxpayers.

It is important for another reason, lowering drug prices means that it will take seniors longer to hit the coverage gap, the donut hole, the period during which time they have to pay 100 percent of their drug costs.

Less than 25 percent of the drug plans in my district offer any sort of coverage during this donut hole period, and most of them have premiums of upwards of $100 a month. A lot of northern California seniors can't afford that. When they hit the coverage gap, they foot the entire bill, or they go without their medicine.

Allowing the Secretary to negotiate prices will complement, not replace, the negotiations being conducted by the private plans. It is one more tool that can be used to lower costs and prolong the amount of time it takes before seniors hit their donut hole.

This legislation does not create price controls, which I oppose, and it explicitly prevents the Secretary from setting a national formulary. Our Medicare program offers seniors choice and allows seniors access to the medicines that they need. This legislation will maintain that choice and access, and it is a good first step to bring about lower prices.

I support H.R. 4, and I encourage all of my colleagues to do the same.

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