Posted on 09/13/2004 6:34:02 PM PDT by RWR8189
Rhetoric |
NARRATOR: What can a President do about the cost of prescription drugs? John Kerry says allow Medicare to negotiate lower prices with drug companies. And permit Americans to buy prescription drugs from Canada.
CHYRON: What Can a President Do? Allow Medicare to Negotiate Lower Prices; Permit Prescription Drugs from Canada
The Facts |
Kerrys Proposals Will Not Reduce Cost Of Prescription Drugs For Seniors
According To Nonpartisan Congressional Budget Office, Government Negotiation Of Drug Prices Would Not Reduce Costs; Under New Medicare Law, Private Plans Will Negotiate Substantial Savings. CBO has examined the effect of striking the noninterference provision (section 1860D-11(i) of the Social Security Act) as added by P. L. 108-173, the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. That section bars the Secretary of Health and Human Services from interfering with the negotiations between drug manufacturers and pharmacies and sponsors of prescription drug plans, or from requiring a particular formulary or price structure for covered Part D drugs. We estimate that striking that provision would have a negligible effect on federal spending because CBO estimates that substantial savings will be obtained by the private plans and that the Secretary would not be able to negotiate prices that further reduce federal spending to a significant degree. Because they will be at substantial financial risk, private plans will have strong incentives to negotiate price discounts, both to control their own costs in providing the drug benefit and to attract enrollees with low premiums and cost-sharing requirements. (Douglas Holtz-Eakin, Director, Congressional Budget Office, Letter To Senate Majority Leader Bill Frist, 1/23/04)
ü CBO Estimated Private Plans Offering New Medicare Prescription Drug Benefit Will Cut Drug Costs By 20 To 25 Percent For Individuals Currently Without Coverage. (Douglas Holtz-Eakin, Director, Congressional Budget Office, Letter To Honorable Don Nickles, Table 2, 11/20/03)
Price Negotiation Is Likely To Limit Seniors Choices Of Drugs Covered Under Medicare Plans, And Could Potentially Have A Stifling Effect On Innovation. A plan by Democratic presidential candidate John Kerry to require the government to negotiate drug prices on behalf of seniors could cut prices by as much as half, according to some estimates. But the move would discourage investment in new drugs and ultimately limit access to some medications, say industry leaders who oppose the plan. Such concerns [about government price setting] could drive away investors, making it difficult for companies to do research, industry leaders said. From our perspective, it could potentially have a stifling effect on innovation, said Dan Quinn, a Genzyme Corp. spokesman. In addition, if the government were to negotiate prices, it would likely limit the drugs covered, foes say. Under the Medicare drug benefit as it is written, seniors will be able to choose from among a variety of plans. (Jennifer Heldt Powell, Industry Queasy Over Kerry Plan: Drug, R&D Loss A Bitter Pill, Cos. Warn, Boston Herald, 8/3/04)
Nonpartisan Congressional Budget Office Also Concluded That Importation From Canada Would Produce Negligible Reduction In Prescription Drug Spending. On the basis of its evaluation of proposals to date, CBO has concluded that permitting the importation of foreign-distributed prescription drugs would produce at most a modest reduction in prescription drug spending in the United States. H.R. 2427, for example, which would have permitted importation from a broad set of industrialized countries, was estimated to reduce total drug spending by $40 billion over 10 years, or by about 1 percent. Permitting importation only from Canada would produce a negligible reduction in drug spending. (Colin Baker, Anna Cook, and Margaret Nowak, Would Prescription Drug Importation Reduce U.S. Drug Spending? Issue Brief, Congressional Budget Office, 4/29/04)
Rhetoric |
NARRATOR: And George Bushs record? He blocked Medicare from negotiating lower prices and banned Americans from buying low cost drugs from Canada. John Kerry will stand up to the drug companies. Its something a president can and must do. The Democratic National Committee is responsible for the content of this advertisement.
CHYRON: Blocked Medicare from Negotiating Lower Prices; Source: Public Law 108-173; Banned Low Cost Drugs from Canada; Source: Associated Press 1/9/04
CHYRON: www.KerryHealthPlan.com; Paid for by the Democratic National Committee, www.Democrats.org. Not authorized by any candidate or candidates committee. The Democratic National Committee is responsible for the content of this advertisement.
The Facts |
Kerry Was For Ban On Government Price Negotiation Before He Was Against It
In 2000, Kerry Co-Sponsored Democrat Legislation That Prohibited Medicare From Negotiating Drug Prices. The bill, which was introduced by Senator Daschle and co-sponsored by Senator Kerry, included this provision: NONINTERFERENCE.--In administering the prescription drug benefit program established under this part, the Secretary may not-- (1) require a particular formulary or institute a price structure for benefits; (2) interfere in any way with negotiations between private entities and drug manufacturers, or wholesalers; or (3) otherwise interfere with the competitive nature of providing a prescription drug benefit through private entities. (S.2541, Introduced 3/10/00; S.2541, Thomas Bill Summary, Introduced 5/10/00; Julie Rovner, GOP, Dems Spar Over Negotiating Language In Drug Law, National Journals CongressDaily, 2/10/04)
President Bush Did Not Ban Prescription Drug Importation, But Is Continuing Safety Requirements That Existed Under Previous Administration
Under 2003 Medicare Law, Drugs Can Be Imported From Canada Only If Department Of Health And Human Services Guarantees Safety And Savings For Consumers. Under the 2003 Medicare law, [d]rugs from Canada would be eligible for importation only if the Health and Human Services Department determines there is no safety risk and the move would save consumers money. (H.R. 1, CQ Vote #459: Adopted 54-44: R 42-9; D 11-35; I 1-0, 11/25/03, Kerry Did Not Vote; Congressional Quarterly Website, www.cq.com, Accessed 8/16/04)
Food And Drug Administration Has Not Been Able To Certify Safety Of Imported Drugs; For Example, 88% Of Shipments Inspected Last Summer Contained Unapproved Drugs. Recent spot examinations of mail shipments of foreign drugs to U.S. consumers revealed that these shipments often contain dangerous or unapproved drugs that pose potentially serious safety problems. In 2003, inspectors found that the majority of the packages examined in these blitzes contained illegal, unapproved drugs. Last summer, FDA and CBP conducted blitz examinations on mail shipments at the Miami and New York (JFK) mail facilities in July, and the San Francisco and Carson, California, mail facilities in August. In each location, the agencies examined packages shipped by international mail over a 3-day time span. Of the 1,153 shipments examined, the overwhelming majority (1,019 packages, or 88 percent) contained unapproved drugs. (William K. Hubbard, Food And Drug Administration, Committee On Finance, U.S. Senate, Testimony, 4/27/04)
[T]he Clinton Administration Also Blocked Importation Of Drugs From Canada, Based On Concerns That Their Safety Could Not Be Ensured By U.S. Regulators. (Nick Anderson, Ad Watch: The Media Fund, Los Angeles Times, 4/24/04)
President Bush Has Acted To Reduce Prescription Drug Costs
Under Medicare Law Signed By President Bush, Millions Of Beneficiaries Are Now Using Drug Discount Cards To Save Up To 18 Percent On Name Brand Drugs And 30-60 Percent On Generics. Seniors and people with disabilities can begin using their Medicare-approved drug discount cards to garner savings on prescription medicines. Analysis by CMS shows that Medicare beneficiaries can expect discounts of up to 18 percent off the average retail prices for name brand drugs and discounts of between 30 and 60 percent on generic drugs. Mail order and Internet discounts through the cards offer savings of up to 24 percent from comparable services. (U.S. Department Of Health And Human Services, HHS Secretary Urges Seniors To Sign Up For Discount Cards, Press Release, 6/1/04)
ü Low-Income Seniors Can Receive $1,200 Credit Over The Next 18 Months That Will Offer Savings Of 30 To 70 Percent On Their Prescription Expenses. On top of the discounts, low-income beneficiaries can qualify for a $600 credit this year to help pay for their prescription medicines and another $600 in 2005. Any money from the credit not spent this year will carry over into 2005. For millions of low-income beneficiaries, these savings translate to 30 to 70 percent or more reductions in their drug costs. (U.S. Department Of Health And Human Services, HHS Secretary Urges Seniors To Sign Up For Discount Cards, Press Release, 6/1/04)
ü Over 4 Million Seniors Already Are Saving On Their Prescription Medicines Through Medicare-Approved Prescription Drug Discount Card. (U.S. Department Of Health And Human Services, HHS Proposes New Rules To Deliver Better Benefits And Savings On Drugs For Medicare Beneficiaries, Press Release, 7/26/04)
Available To All Medicare Beneficiaries In 2006, New Drug Benefit Will Cover About 50 Percent Of Costs For Seniors Who Currently Have No Drug Coverage. Medicare beneficiaries who wish to receive the prescription drug benefit can choose to enroll either in a Medicare health plan or prescription drug plan with a monthly premium of around $35. The drug coverage will be available to enrollees who choose the traditional, fee-for-service Medicare plan as well as any Medicare Advantage program. All beneficiaries, regardless of their income, will receive significant help with their drug bills and protection from high drug costs under the new Medicare prescription drug plans. After a $250 deductible, the standard drug benefit paid by the federal government in 2006 will be 75 percent of the drug costs up to an initial coverage limit of $2,250 and 95 percent of the beneficiarys drug costs once the beneficiary spends $3,600 out-of-pocket. There is no annual plan maximum and that coverage will never run out. On average, the new benefit will cover about half of beneficiaries prescription drug costs for those currently without coverage. (U.S. Department Of Health And Human Services, HHS Proposes New Rules To Deliver Better Benefits And Savings On Drugs For Medicare Beneficiaries, Press Release, 7/26/04)
ü Will Cover Approximately 95 Percent Of Drug Costs For Low-Income Seniors. The new prescription drug benefit will allow all Medicare beneficiaries to enroll in drug coverage through a prescription drug plan or Medicare health plan with Medicare paying for 75 percent of the premium. Additional benefits for Medicare beneficiaries who have limited means will cover, on average, 95 percent of their drug costs. (U.S. Department Of Health And Human Services, HHS Proposes New Rules To Deliver Better Benefits And Savings On Drugs For Medicare Beneficiaries, Press Release, 7/26/04)
Bush Administration Implemented Program To Save Consumers As Much As $3.5 Billion Each Year By Moving Low-Priced Generic Drugs To The Market Faster. President Bush today announced new regulations to hasten the pace at which generic drugs are brought to market, a measure the administration says will save $3.5 billion annually after it takes effect Aug. 18. Specifically, the regulations will limit original drugmakers to one 30-month stay blocking the entry of generic drugs by filing patent lawsuits. The FDA also said it will make internal changes, speeding its review procedures to reduce the time it takes for generic drugs to be declared safe. With a $13 million increase in its budget for generic drugs requested by Bush, the FDA aims to reduce its generic drug application process to 17 months from 20 months. (Dana Milbank, New Drug Rules Aim To Speed Generics, The Washington Post, 6/13/03)
Kerry Skipped 36 Of 38 Votes On Medicare Bill,
Said He Will Repeal Prescription Drug Benefit If Elected
Kerry Missed 36 Of 38 Votes On Medicare Bill, Including Final Passage Of Senate Version And Conference Report. (H.R.1, CQ Vote #459: Prescription Drug Benefit - Conference Report, Passed 54-44: R 42-9; D 11-35; I 1-0, 11/25/03; S.1, CQ Vote #262: Prescription Drug Benefit - Passage, Passed 76-21: R 40-10; D 35-11; I 1-0, 6/27/03; S.1, CQ Vote #261: Prescription Drug Benefit - Means Test, Rejected 38-59: R 3-47; D 35-11; I 0-1, 6/26/03; S.1, CQ Vote #260: Prescription Drug Benefit - Alternative Plan, Rejected 21-75: R 20-29; D 1-45; I 0-1, 6/26/03; S.1, CQ Vote #259: Prescription Drug Benefit - Retiree Fallback Plan, Rejected 42-54: R 0-49; D 42-4; I 0-1, 6/26/03; S.1, CQ Vote #258: Prescription Drug Benefit - Medigap Policies, Rejected 43-55: R 1-50; D 42-4; I 0-1, 6/26/03; S.1, CQ Vote #257: Prescription Drug Benefit - Medicaid Coverage, Rejected 47-51: R 5-46; D 42-4; I 0-1, 6/26/03; S.1, CQ Vote #256: Prescription Drug Benefit - Immigrant Coverage, Rejected 33-65: R 32-19; D 1-45; I 0-1, 6/26/03; S.1, CQ Vote #255: Prescription Drug Benefit - Experimental Drug Coverage, Adopted 71-26: R 50-0; D 20-26; I 1-0, 6/26/03; S.1, CQ Vote #254: Prescription Drug Benefit - Premium Reduction, Rejected 39-59: R 0-51; D 39-7; I 0-1, 6/26/03; S.1, CQ Vote #253: Prescription Drug Benefit - Additional Disease Treatment, Agreed To 57-41: R 51-0; D 5-41; I 1-0, 6/26/03; S.1, CQ Vote #252: Prescription Drug Benefit - Alzheimers Subsidy, Adopted 98-0: R 51-0; D 46-0; I 1-0, 6/26/03; CQ Vote #251: Prescription Drug Benefit - Asset Test, Adopted 69-29: R 22-29; D 46-0; I 1-0, 6/26/03; S.1, CQ Vote #250: Prescription Drug Benefit - Cancer Patient Coverage, Agreed To 54-44: R 51-0; D 3-43; I 0-1, 6/26/03; S.1, CQ Vote #249: Prescription Drug Benefit - Cancer Care, Adopted 97-1: R 50-1; D 46-0; I 1-0, 6/26/03; S.1, CQ Vote #248: Prescription Drug Benefit - Drug Advertisements, Rejected 39-59: R 0-51; D 39-7; I 0-1, 6/26/03; S.1, CQ Vote #247: Prescription Drug Benefit - Disability Services, Agreed To 50-48: R 48-3; D 2-44; I 0-1, 6/26/03; S.1, CQ Vote #246: Prescription Drug Benefit - Cost-Effectiveness Studies, Rejected 43-52: R 0-48; D 43-3; I 0-1, 6/25/03; S.1, CQ Vote #245: Prescription Drug Benefit - Durbin Substitute, Rejected 39-56: R 0-48; D 39-7; I 0-1, 6/25/03; S.1, CQ Vote #244: Prescription Drug Benefit - Premium Reduction, Rejected 39-56: R 0-49; D 39-6; I 0-1, 6/25/03; S.1, CQ Vote #243: Prescription Drug Benefit - Drug Advertisements, Rejected 26-69: R 0-49; D 26-19; I 0-1, 6/25/03; S.1, CQ Vote #242: Prescription Drug Benefit - Health Centers, Adopted 94-1: R 48-1; D 45-0; I 1-0, 6/25/03; S.1, CQ Vote #241: Prescription Drug Benefit - Employer Compensation, Rejected 41-55: R 0-50; D 41-4; I 0-1, 6/24/03; S.1, CQ Vote #240: Prescription Drug Benefit - Drug Cost Coverage, Rejected 41-54: R 0-49; D 41-4; I 0-1, 6/24/03; S.1, CQ Vote #239: Prescription Drug Benefit - Benefit Availability, Rejected 41-54: R 1-48; D 40-5; I 0-1, 6/24/03; S.1, CQ Vote #238: Prescription Drug Benefit - Two-Year Fallback Plan, Agreed To 51-45: R 48-2; D 2-43; I 1-0, 6/24/03; S.1, CQ Vote #237: Prescription Drug Benefit - Congressional Coverage, Adopted 93-3: R 50-0; D 42-3; I 1-0, 6/24/03; S.1, CQ Vote #236: Prescription Drug Benefit - Cost Sharing Extension, Agreed To 54-42: R 50-0; D 3-42; I 1-0, 6/24/03; S.1, CQ Vote #235: Prescription Drug Benefit - Canadian Price Equity, Agreed To 66-31: R 51-0; D 14-31; I 1-0, 6/24/03; S.1, CQ Vote #234: Prescription Drug Benefit - Open Enrollment Period, Agreed To 55-42: R 51-0; D 3-42; I 1-0, 6/24/03; S.1, CQ Vote #233: Prescription Drug Benefit - Third-Party Coverage, Agreed To 52-43: R 49-0; D 3-42; I 0-1, 6/24/03; S.1, CQ Vote #232: Prescription Drug Benefit - Drug Importation, Adopted 62-28: R 21-25; D 40-3; I 1-06/20/03; S.1, CQ Vote #230: Prescription Drug Benefit - Drug Patents, Adopted 94-1: R 50-1; D 43-0; I 1-0, 6/19/03; S.1, CQ Vote #229: Prescription Drug Benefit - Premium Cap, Rejected 39-56: R 0-51; D 39-4; I 0-1, 6/19/03; S.1, CQ Vote #228: Prescription Drug Benefit - Drug Cost Disclosure, Adopted 95-0: R 51-0; D 43-0; I 1-0, 6/19/03; S.1, CQ Vote #227: Prescription Drug Benefit - Benefit Within Medicare, Rejected 37-58: R 0-51; D 37-6; I 0-1, 6/18/03; H.R.1, CQ Vote #458: Motion Agreed To 61-39: R 49-2; D 11-37; I 1-0, 11/24/03, Kerry Voted Nay; H.R.1, CQ Vote #457: Motion Agreed To 70-29: R 47-3; D 22-26; I 1-0, 11/24/03, Kerry Voted Nay)
ü Kerry Was One Of Only Two Senators To Miss Final Vote On Conference Report. Kerry chose to hit campaign trail instead because he felt that voting was not going to make a difference. (Sam Hananel, Kerry, Lieberman Skip Final Medicare Vote To Return To Campaign Trail, The Associated Press, 11/25/03)
Kerry Said, If Im President Were Going To Repeal That Phony [Prescription Drug] Bill. (Sen. John Kerry, Ending The Era Of Special Interests, Remarks In Nashua, NH, 1/21/04)
ü Kerrys Remarks Followed Advice Offered By Democrat Pollsters On Same Day: Define The Current Law As Unacceptable - Not As Something That Can Be Fixed
(Al Quinlan and Celinda Lake, Engaging On Prescription Drugs, Memorandum To Sen. Tom Daschle, Rep. Nancy Pelosi and Chairman Matsui, 1/21/04)
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