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Legislative Update: Prescription Drugs: Why Not A Price War? Helping seniors afford prescription drugs has become the leading senior issue in this session of Congress. Both parties, the President, and now even the drug manufacturers say they would support adding drug benefits to Medicare. A significant number of hearings have been held to debate the issue. TSCL has entered statements and testimony on behalf of our members in support. What is holding things up when senior health is at stake? At issue is whether a prescription drug benefit should be added to the current Medicare system, as President Clinton has proposed, or whether the benefit should be added within the context of a reformed system as proposed by Senators John Breaux (D-LA) and Bill Frist (R-TN). Until very recently Medicare has been in precarious financial shape. Adding a prescription drug benefit, especially if drug prices continue to rise wildly, could cause Medicare to return to deficit spending. Skyrocketing drug prices have prompted private insurers to cut back on drug benefits, or drop out of the Medicare program altogether. It is therefore prudent that we proceed in a financially responsible manner in adding a prescription drug benefit to Medicare. Congress can be doing something in the interim to make drugs more affordable without ever enacting price controls. What we need is an all out price war between drug companies. Congress should be doing everything in its power to allow lower-cost drugs into the market. First, Congress should encourage more generics to be introduced into the market, and should end patent extensions which favor over-priced brand name prescription drugs. Secondly, Congress should allow retail pharmacies and distributors to import cheaper FDA-approved drugs from other countries. World trade has already kept prices in check on thousands of products we use every day and lower inflation has resulted. Government price controls don't work very well. Providers simply find a way around them. Competitive pricing, on the other hand does—consumers vote with their pocket books. We urge you to contact your member of Congress asking them to take immediate action make drugs more affordable, both by adding a prescription drug benefit to Medicare, and also by encouraging more generics and the import of cheaper FDA-approved drugs.
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