03 June 2004

Dems blast Medicare cards

WASHINGTON -- A day after Medicare drug discount cards went into effect, Democrats blasted the program yesterday, saying Medicare could save seniors more money on medicines if it could negotiate for lower prices like the Department of Veterans Affairs.

The rising cost of prescription drugs is a hot political issue. Democrats have taken aim at the Republican-supported discount cards, while Republicans and Bush officials have touted them as a way for seniors to save on their drug bills.

Yesterday, Democrats called the cards a disaster and said the program has yet to show real savings compared to Canadian pharmacies or the VA, which is allowed by law to negotiate prices.

They also pointed out that of the 2.8 million enrolled in the program, only about 500,000 chose to sign up. The rest were automatically enrolled because they belonged to Medicare managed care plans.

"This is a huge embarrassment to the administration," said Senate Minority leader Tom Daschle (D-S.D.).

Democratic lawmakers have proposed legislation to repeal a provision in the new Medicare law that doesn't allow the agency to negotiate for lower drug prices on behalf of the 41 million Medicare beneficiaries. Also pending is a bipartisan bill that would legalize the importation of drugs from Canada.

Families USA, a liberal health consumer group, released a study yesterday showing price differences offered by the discount cards, the VA and a Canadian pharmacy. For example, a 30-day supply of (10 mg) of Lipitor, one of the most commonly used drugs by seniors, cost $40.55 at the VA, $35.04 in Canada and $64.67 with a Medicare discount card.

Instead of the discount cards, Congress and Bush should let Medicare bargain for lower prices like the VA successfully does for vets, said Ron Pollack, head of Families USA. "Other than political pressure from the drug lobby, there is no sensible reason why Congress and the president refused to take this far more effective step," he said.

Phil Blando, a spokesman for the Pharmaceutical Care Management Association, said the Families' report omits generic drugs, which comprise about half of all prescriptions, and mail orders, the cheapest option. "These data wouldn't pass muster in a Statistics 101 course," he said.

Card supporters also argue that the VA approach would limit the choice of drugs for seniors. They also say the VA represents about 2 percent of drug sales, compared to Medicare's 40 percent.

"Medicare would be a price fixer, not a negotiator," said Rick Smith of PhRMA, a drug industry trade group.

Sen. Hillary Rodham Clinton (D-N.Y.) criticized the administration for opposing re-importation and lifting the ban on Medicare to negotiate. "Instead we've saddled our seniors with a confusing game of cards," Clinton said. "It's a true Trojan Horse without Brad Pitt."

Cost of medication

Chart below shows the average prices of the top 10 drugs, ranked by how frequently they were prescribed to seniors last year. "VA" shows what Veterans Affairs paid; Medicare columns show the price range listed for participating discount cards.

SOURCE: FAMILIES USA

Copyright © 2004, Newsday, Inc.

Search Our Canadian Pharmacy Prices

close window