WASHINGTON, DC – U.S. Congressman Bart Stupak (D-Menominee) strongly supports allowing the U.S. Secretary of Health and Human Services (HHS) to negotiate prescription drug prices as part of health care reform legislation for Medicare beneficiaries.  Stupak joined 68 other members of the U.S. House of Representatives in sending a letter urging the Speaker of the House to retain a provision in H.R. 3200, America’s Affordable Health Choices Act, which would allow the HHS Secretary to negotiate with drug companies to lower drug prices within the Medicare Part D program.

“With health care costs growing at unsustainable rates it only makes sense for the federal government to use its purchasing power to lower the cost of prescription drugs for senior citizens, which in turn lowers costs for all taxpayers,” Stupak said.  “Any health care reform must control costs and promote true competition in the health insurance industry.  This provision would help do both while saving taxpayers billions of dollars.”

Since the Medicare Part D program was established in 2004, the HHS Secretary has been prohibited from negotiating directly with pharmaceutical companies to lower prescription drug prices for Medicare Part D participants.  In July, the House Energy and Commerce Committee, of which Stupak is a member, approved an amendment to H.R 3200 requiring the HHS Secretary to negotiate with drug companies on behalf of seniors.  The letter sent to the Speaker urges her to retain this provision in the health reform bill that comes before the full House for a vote.

An Oversight and Government Reform Committee report released in 2008 found Medicare Part D insurers pay significantly higher prices for prescription drugs than the Medicaid program.  It also found that if Medicare negotiated directly with drug manufacturers and obtained prices for all Medicare beneficiaries equivalent to the Medicaid prices the potential savings to taxpayers would be $156 billion over 10 years.

“Rising health care costs are taking a toll on all Americans by putting unyielding pressure on federally funded health care programs, including Medicare prescription drug costs,” Stupak said.  “I will continue to work to improve any health care reform bill to reduce costs and meet the needs of seniors and all residents across Northern Michigan.”

Audio from Congressman Stupak about the letter to the Speaker can be found at http://www.house.gov/list/hearing/mi01_stupak/20091001medicaredrugs.mp3.

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