Senator Durbin and Representatives Schakowsky and Berry Fight to Cut Costs for Prescription Drugs

Press Release

Senator Durbin and Representatives Schakowsky and Berry Fight to Cut Costs for Prescription Drugs

Tuesday, October 23, 2007

[WASHINGTON, D.C.] - U.S. Senator Dick Durbin (D-IL) along with U.S. Representatives Jan Schakowsky (IL-09) and Marion Berry (AR-01) today introduced the Medicare Prescription Drug Savings and Choice Act. The bill creates a Medicare administered prescription drug plan to provide seniors an alternative to the privately administered prescription drug plans currently offered under Part D.

"Under current law, Medicare beneficiaries are stuck with confusing, costly plans designed by insurance and drug companies. What seniors deserve is an affordable, straightforward drug benefit," Durbin said. "This legislation will give them the choice of a drug plan operated directly by Medicare - just like all other Medicare benefits - and require the Administration to negotiate on behalf of seniors to bring down the exorbitant costs of needed medications."

"The Medicare Prescription Drug Savings and Choice Act would put the power back in the hands of seniors and persons with disabilities by allowing them to choose between a Medicare-operated drug plan and a private drug plan," Schakowsky said. "Under the current system, seniors and people with disabilities are paying more and getting less. Today's report by the Medicare Rights Center and Consumers Union confirm that seniors and persons with disabilities are being hurt by the high costs of private insurers and their inability to negotiate lower drug prices. Our bill would reverse the damage done by President Bush's privatization scheme by giving seniors and people with disabilities a real choice to pay less and get more."

"While the cost of prescription drugs and other living expenses are skyrocketing, Americans are forced to do more with less money," Berry said. "The report released by the Medicare Rights Center with Consumers Union proves that we need to give the Secretary of Health and Human Services the power to negotiate on behalf of seniors, instead of giving the private insurance and pharmaceutical companies control over drug prices so they can maximize their profits. A Medicare-administered plan, which includes price negotiation authority, passes an estimated $40 billion in savings along to seniors and taxpayers. This legislation will provide seniors with the option of choosing between a Medicare operated or privately run plan that creates competition, giving seniors a potentially cheaper alternative they already know and trust."

The legislation creates at least one Medicare operated prescription drug plan to be offered nationwide. The bill requires the Secretary of the Department of Health and Human Services to negotiate price discounts of covered drugs with pharmaceutical companies on behalf of millions of Americans in order to make prescription drugs more affordable.

Recently the House Committee on Oversight and Government Reform released a report entitled, "Private Medicare Drug Plans: High Expenses and Low Rebates Increase the Costs of Medicare Drug Coverage." The report reveals that taxpayers and seniors have been hurt by the high administrative costs of the private Part D insurers and by the inability of Medicare to negotiate price discounts.

Under the Medicare operated drug plan, the Secretary will also develop a system for paying pharmacies promptly that includes payment within 14 calendar days for claims submitted electronically.

Durbin, Schakowsky and Berry introduced similar legislation last year.

Source