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House passes Medicare drug negotiation bill

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The new Democrat-controlled House followed through on a campaign promise--and ignored a presidential veto threat--by passing legislation requiring the federal government to negotiate bulk drug purchases for Medicare Part D. The Friday vote then set the Washington spin machine into a pre-holiday frenzy, and the Capitol Hill press corps took full advantage of the rhetorical flourishes. "Those who insist that the sky will fall if drug companies negotiate lower prescription prices are arguing that those companies should continue to skin a fat hog at the expense of taxpayers and beneficiaries," Michigan Democrat John Dingell, the bill's lead sponsor, told the New York Times.

However, White House Press Secretary Tony Snow made clear the Bush administration's opposition to the legislation by saying, "If this bill is presented to the president, he will veto it." According to the Associated Press, Dingell was ready with a response: "The president and his Republican allies have argued that this bill would do nothing. Then why, I must ask, would he bother to veto it?"

Rep. Tom Price (R-GA,) called the bill "a solution in search of a problem," and fellow GOP Rep. Joe Barton of Texas predicted that the plan would not survive the Senate. "It'll probably die there, which will be a nice benign death. And then we can get back to being responsible," Barton said, apparently believing that Congress had in fact been responsible prior to Friday.

For details
- see the New York Times report
- read the AP account of the same story

PLUS: Canadian pharmacists want health minister to ban Rx exports to the U.S. Report

Related Articles:
Dems tackle Medicare drug costs. Report
Critics question Democrats' Part D plans. Report

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"...apparently believing that Congress had in fact been responsible prior to Friday".

Genius.

Sounds like legislative vapor-ware to me. Prices for drugs are already negotiated - by payors.

Before you can negotiate drug prices, you have to designate a formulary. Do we really want one national formulary for all of us? And just look at the VA's formular to get an idea of what a thrifty national formulary might look like - lots of current meds that are important to some patients would be left out.

A bigger problem is the lack of uncontrolled prices for drugs. When countries like Canada negotiate big discounts, and laws prohibit reimportation, market pricing is eliminated. The Dems would make a bigger impact if they just allowed reimportation, ending the US subsidization of drugs in Canada and other wealthy countries. The return to market driven pricing is arguably the best method for finding the best balance between prices, and profits pharma needs to maintain innovation.

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