Taking On Prescription Drug Prices

Statement

A bill to force big drug companies to negotiate for lower prices on the drugs they provide to Medicare recipients was rolled out this morning. The "Medicare Prescription Drug Price Negotiation Act," co-sponsored by Congresswoman Chellie Pingree, requires Medicare to use its enormous purchasing power to negotiate better prices for the prescription drugs purchased for Medicare recipients.

"Medicare Part D was set up as a giveaway to the big drug companies," Pingree said. "When Congress passed the law they made it illegal for Medicare to demand discounts from the drug companies--which is a bad deal for seniors and a bad deal for taxpayers. It's time we stopped lining the pockets of the big pharmaceutical companies and started putting some of that money back into the pockets of our seniors."

The bill is expected to save seniors and taxpayers $156 billion over ten years through lower prescription drug prices.

"I own a small business and I wouldn't dream of not trying to negotiate a better deal when making a big purchase," Pingree said. "Paying list price for billions of dollars of prescription drugs without negotiating is crazy. It's a rip-off and American taxpayers and seniors are paying the price."

Pingree introduced a first-in-the-nation drug-pricing program when she served in the Maine Legislature, allowing Maine to negotiate for better prices for prescriptions. The big drug companies fought the measure all way to the U.S. Supreme Court. (The law was upheld.)

"I've taken on the big drug companies before," Pingree said. "They're powerful and they've got armies of lobbyists, but we're on the right side and aren't afraid to take on the fight."

Unlike the Medicare program, the Veterans Administration does negotiate for lower prices--and it results in big savings. One Families USA report found that the top five Medicare Part D insurers charged prices 58 percent higher than the VA for 20 commonly prescribed drugs.

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