Cornyn Touts Success Of Medicare Prescription Drug Program

Press Release

Cornyn Touts Success Of Medicare Prescription Drug Program

With the Senate scheduled to vote tomorrow morning on a motion to consider prescription drug price-fixing legislation proposed by Senate Democrats, U.S. Sen. John Cornyn, Vice Chairman of the Senate Republican Conference, spoke to this issue on the Senate floor this evening. Sen. Cornyn touted the success of the Medicare prescription drug program and the harm that the Democrats' price-fixing scheme would cause to America's seniors.

Senator John Cornyn Discusses Prescription Drugs and Medicare on the Senate Floor - 04/18/2007

Senator John Cornyn Discusses Prescription Drugs and Medicare on the Senate Floor - 04/18/2007
View | Can't view the video?
"Republicans passed a prescription drug benefit which uses market competition to provide critical medications to seniors at costs much lower than projected. The results so far demonstrate a familiar principle—that competition and choice can bring lower prices.

"Now the Democrats want to change that successful model so we have to ask ourselves, how does their plan improve on this very successful government program? Since I believe that being a zealous guardian of taxpayer dollars is one of the reasons Texans elected me, one if the first questions should be: will the Democrats' plan save taxpayers money while continuing to provide choice and access to prescription drugs for seniors? The simple answer is no. The nonpartisan Congressional Budget Office determined that the Democrats' proposal would have a ‘negligible effect' on reducing federal spending.

"As policymakers, it is also our job to ask: what are the potential consequences of the Democrats' plan? Quite simply, the consequences are dire. Since government will decide which drugs seniors have access to, seniors will be left with fewer choices.

"The Democrats have presented us with a remarkably clear choice today. If you believe that the way to improve our broken health care system is to embrace a market-driven approach that lowers costs and does not reduce choice for seniors, then you will vote to continue the prescription drug program the Republicans have implemented. If you believe, as the Democrats do, that government bureaucrats are better suited than the free market to make pricing decisions for thousands of prescription drugs then you will vote for this bill.

"I will vote for the current market-driven approach that provides choices for seniors and puts patients and doctors in charge rather than government, and I urge my colleagues to join me."

Additional background information cited by Sen. Cornyn on the floor this evening:

* More than 90 percent of seniors eligible for the benefit have drug coverage, and they will save, on average, $1,200 per year. Most importantly, more than 80 percent of enrolled seniors are satisfied with the program.
* Competition provided in the prescription drug benefit has forced down costs far below what was anticipated. In 2007, the average premium for the benefit will be $22 a month — 40-percent less than projected.
* The Congressional Budget Office's new budget estimates for the next 10 years show that net Medicare costs for the prescription drug benefit will be more than 30 percent — or $265 billion — lower than originally forecast.
* Not only are costs lower than expected, but, for 2007, more drugs are also being covered by participating plans than last year. The average plan now covers 4,300 drugs in its formulary versus 3,800 last year — a 13-percent increase.

Source