There's a simple economic reality to adding a prescription drug benefit to Medicare.  Unless the prices that the government pays for the drugs are substantially lower than they are today, there will be no affordable or universal Medicare drug benefit.

The President has proposed funding to the states to help lower income seniors. This plan will leave out the vast majority of seniors who are in dire need of help in paying for their medicine.  The main Republican proposal constitutes a subsidy to the insurance companies - and a highly dubious approach.  The leading Democratic proposals are also inadequate because Medicare would pay far too much for drugs; and the tax cut left too little money for the program.  In fact, any senior who spends $1,500 or less a year on prescription drugs in 2004 will PAY MORE under the leading Democratic plan than they would without any coverage at all.

All this would still cost taxpayers more than $300 billion over the next ten years.  Seniors and others can drive into Canada and Mexico today and get a 40%-50% discount -- without spending one cent of taxpayer money.  Despite spending tens of billions a year on a Medicare prescription drug program, seniors in the United States would still pay more than consumers in Canada, Mexico and every other country -- because Congress has not lowered drug prices.

What should Congress be doing?

1. By fixing the loopholes in the reimportation legislation passed last year, pharmacists and wholesalers can finally access the world market for U.S. made, FDA-approved prescription drugs at 40-50% savings, bringing true competition to a monopolistic pharmaceutical market.
2. The taxpayers of this country spend billions of dollars every year through the National Institutes of Health developing breakthrough medications.  Since 1965, 7 out of the top 21 drugs were developed with taxpayer money.  Despite funding the development of these drugs, American consumers pay outrageously high prices for them because the government has not imposed a "reasonable pricing clause" on the industry.  By ending this practice, we can ensure that future breakthrough medications invented with the taxpayer's money are sold at reasonable prices.

Why is Congress not moving in this direction?  In the last election cycle, the pharmaceutical industry spent $262 million dollars on political activities -- $177 million on lobbying, $65 million on issue ads, and $20 million on campaign contributions.  Any member of Congress who stands up to the industry knows that his or her opponent can receive unlimited amounts of campaign contributions.  That's the reality.

The United States can provide an affordable comprehensive Medicare prescription drug benefit without breaking the bank.  But only if Congress and the President are willing to reject the millions that the drug companies are pumping into the political system.  For that to happen, Americans will have to let their members of Congress know that nothing less is acceptable.

If you would like to sign our Petition to Congress for Voluntary Medicare Prescription Drug Coverage, click here: http://action.tscl.org/VolMedicarePresDrugCoverage.asp

November 2001