Just curious, has anyone see one of our local Congressional Democrats take a high-profile position on Democratic attempts to have the federal government "negotiate" prices for the Medicare drug benefit? I haven't, but maybe I missed it.
In the meantime, the Washington Post gives a one, two punch and then some to the Democratic proposal. First, the Congressional Budget Office says such "negotiations" won't actually save money over the current system where private sector providers compete to provide the benefit to seniors. Thus, the whole point of the proposal is moot. Second, the Post notes experts are skewering the Democrats' praise of the VA's drug pricing system as a model for what they want to see in Medicare. For rhetorical flourish, the Post also runs an op-ed from the current HHS Secretary questioning the Democratic proposal:
The success of the Medicare prescription drug benefit provides strong evidence that competition among private drug plans has contributed significantly to lowering costs. The average monthly premium has dropped by 42 percent, from an estimated $38 to $22 -- and there is a plan available for less than $20 a month in every state. The net Medicare cost of the drug program has fallen by close to $200 billion since its passage in 2003.Seniors and people with disabilities like the benefit. Studies consistently show that three-quarters of Medicare beneficiaries are satisfied with their coverage. Individuals like being able to choose the plan that best fits their needs. A single, one-size-fits-all drug plan would have made the choice easier, and Congress did create a standard plan. But fewer than 15 percent of enrollees have selected that standard plan -- opting instead for plans with lower premiums, no deductibles and enhanced coverage.
In summary, the current program is working well, costing less then expected, and leaving seniors satisfied. The proposed modifications won't save any money. So, what's the point of making a change?
Democrats will probably still pass the bill in question, simply because it's one of their "100 hour promises" and they'll look bad if they don't. But after the CBO report, there is simply no reason for any Republican (or responsible Democrat) to vote, "aye." It's a bad proposal, likely destined to face a just death in the Senate.
Posted by Eric Earling at January 11, 2007 08:24 AM | Email ThisAre there any Republicans left willing to fight the Democrats, or are Republican RINOs simply going to go along to keep any heat off of them?
Posted by: MJC on January 11, 2007 08:21 AMI got a call from Dave Reichert's D.C. office they other day, after I sent him a letter about how the VA negotiated drug prices have affected me by the lack of them being able to carry the medication that works for me. His office told me that he has been hearing that same thing quite a bit and that he is very concerned over what this plan would do (and also that he would like to see the VA's plan repealed). He has said he will not vote for this bill. Let us see if that is the case.
Posted by: TrueSoldier on January 11, 2007 09:10 AMLet the free marketplace deliver drugs and determine prices - it does it better than any Government ever could.
-JP
Posted by: Jefferson Paine on January 11, 2007 03:22 PMWhen asked why drug prices are as high as they are, the pharmaceutical industry typically cites the very real need to recover high research and development costs for new drugs (although they omit the ridiculous amount of money they spend marketing drugs directly to consumers rather than to health care providers in order to drum up demand).
The question I'd like to see answered is why US consumers should be asked to shoulder the entire burden of those R&D costs and to effectively subsidize drugs for Europe, Canada, and other developed and industrialized nations that do control or negotiate drug prices.
If the answer isn't for the US to negotiate prices as well in order to force drug companies to negotiate better deals with other countries and spread the R&D costs around a bit more more fairly, then what would you do to level the playing field and create a true free market? Or should US consumers simply continue to bear the entire burden of the industry's development and marketing costs, giving the rest of the industrialized world a free ride on drug prices?
Posted by: Prometheus on January 13, 2007 07:22 AMYour argument is noteworthy, however, it can't be defended. Haven't you heard? The U.S. is an evil nation of selfish over consuming environmal trashing war mongering people. How could it be possible that we the people could be contribute directly or indirectly toward the well-being of the world? (wink)