Congressman Sander Levin

Lowering the cost of Prescription Drugs

The past fifty years have seen a revolution in prescription medications. Not only do we now have access to a growing number of traditional chemical drugs, we are also seeing a rise in “biologics”, drugs made from living organisms or biologic processes. These drugs are fighting such diseases as cancer, multiple sclerosis, and Parkinson’s disease.

Prescription drugs and biologics can save lives and improve patients’ quality of life. But to do so they must be affordable to the people who need them.

For this reason, I am working with my colleagues in the House to reduce the cost of prescription drugs, and provide assistance to people who cannot afford their medications. Biologic drugs in particular can cost patients exorbitant amounts, in some cases more than $15,000 a year. I am committed to working to bring down the costs of these cutting-edge therapies for patients with cancer, multiple sclerosis, arthritis and other diseases. In 1984, Congress established a process for the approval of generic chemical drugs, saving consumers millions of dollars a year in drug costs. However, because biologic drugs came into widespread use after the passage of this legislation, there is no equivalent generics process for this class of medicines. One of the reasons the costs for biologics is so high is that patients have no choice but to purchase the expensive brand-name biologic drugs. I believe Congress must act to provide a process for approving generic biologics that will be available at lower cost to consumers.

With regard to Medicare, I believe that the program should cover prescription drugs in the same way that it covers physician visits and hospital stays, with full coverage and limited co-pays. Unfortunately, in 2003 the President and a Republican-led Congress took a different approach and established a program in which private plans contract with the government to provide prescription drug coverage to seniors.

I believe this approach is flawed. For example, the current Medicare Prescription Drug program has a “donut hole” in which seniors have to pay at least $3,850 in out of pocket costs to regain their drug coverage. The “donut hole” is the part of the program where Medicare beneficiaries are faced with a gap in coverage. In the donut hole, seniors continue paying monthly insurance fees but stop receiving financial coverage for their drugs. I am advocating for elimination of the donut hole as part of health care reform.

I also favor legislation to give seniors more time to choose a plan and enroll, and to give them an opportunity to change plans if necessary. I am a co-sponsor of The Prescription Coverage Now Act of 2007 to assist beneficiaries who qualify with the cost of their prescription drugs. I am advocating for these and other improvements in the Medicare Part D program to be included in health care reform

As part of health care reform, I believe we must focus on ensuring that all health plans cover the prescription drugs people need at a cost they can afford.

(Updated October 19, 2009)