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Legislative Update: Real Opportunity For Prescription Drug Reform In 2000 By Michael Ouellette, Director of Legislative Affairs, TSCL Adding a prescription drug benefit to Medicare, reforming Medicare, Social Security's solvency, annual Cost-Of-Living Adjustments to accurately reflect the true cost-of-living of older Americans, and the need to correct the Social Security Notch continue to be hotly debated in Washington. TSCL sees a real opportunity to encourage sweeping improvements this year. The entire House of Representatives and one-third of the Senate are seeking reelection. Nervous incumbents do not want to face a disgruntled electorate as a Member of a "do nothing" Congress. This is particularly true in the case of prescription drugs. High costs are forcing seniors to patch together sources for drugs they need. Some ask their doctors for free samples; others make trips to Mexico or Canada to buy more reasonably priced drugs; still others rely on difficult-to-access charitable programs set up by the pharmaceutical industry; and some go without. A USA Today survey found that Americans pay about one-third more for prescription drugs than people in other wealthy nations-every industrialized country except the United States imposes some form of price control on prescription drugs. The pharmaceutical industry says that lowering prices to international levels would devastate research and development. Another study, by Families USA (an advocacy group), shows that while Fortune 500 companies posted a median profit of 4.4% in 1998, drug companies posted profits of 20%. Drug companies qualify for generous research and development tax credits which further boost profits at taxpayer expense. In a study published by Representative Tom Allen (D-ME), it was found that some drugs are cheaper for pets than people-a month's supply of Augmentin( costs 163% more at drugstores than at veterinary pharmacies. It's time to enact prescription drug reforms for Medicare beneficiaries. Please write to your Members of Congress and tell them to take action this session to make prescription drugs more accessible and more affordable for Medicare recipients. Tell them how high drug costs affect you. This article first appeared in Volume 5, Issue 3 of "The Social Security and Medicare Advisor" newsletter (February/2000). To receive future editions of "The Advisor" in its special, free e-mail version, please click here. | ||||||||
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