|
||||||||
Drug Companies Ride to the Bank on the Backs of Seniors By Michael Ouellette, Legislative Director, TREA Senior Citizens League Relief from rapidly rising prescription drugs costs is unlikely to come any time soon despite new legislation that allows the re-importation of less-costly FDA-approved drugs. The legislation lets pharmacists and wholesalers buy U.S. brand name drugs in countries with lower prices, and resell them at a discount in the United States, but is riddled with so many loopholes and obstacles to implementation, that most industry analysts believe it virtually unworkable. The pharmaceutical manufacturers, who spent record amounts on lobbying and campaign contributions this year, were successful in buying more time. Although prescription drug costs dominated the debate during this past legislative session, Congress left the issue for next year. Drug companies will continue their ride to the bank on the backs of American seniors. Drug manufacturers take advantage of a package of lucrative tax breaks, tax-payer-financed federal research subsidies, and protection from competition from lower-cost drugs from other countries. The big brand name drug companies receive further protection from competition through delay of the introduction of generic drugs. On the other hand, U.S. consumers, especially uninsured Medicare beneficiaries, are the target for price gouging by the drug industry; paying the highest prices for drugs in the world. One recent survey found that prices charged to Medicare beneficiaries without drug coverage are nearly double what the big insurers, like HMOs and the Veterans Administration pay. Average spending on prescription drugs increased about 17% this year, making the drug industry among the most profitable in the nation. While Congress continues to debate the issue, TSCL members can find some relief from high drug prices with TSCL's "Mature RX" drug discount card. The program is free to TSCL members. TSCL remains committed to affordable prescription drug coverage for all Medicare recipients and we urge you to continue to keep the pressure on newly elected Members of Congress and the President-elect. This article first appeared in Volume 6, Issue 2 of "The Social Security and Medicare Advisor" newsletter (December/January/2001). To receive future editions of "The Advisor" in its special, free e-mail version, please click here. | ||||||||
|
|
||||||||
