<nobr>Apr 10, 2007</nobr>

ERIC Letter to Senate Opposing Medicare Part D Price Controls

ERIC Letter on Medicare Part D Non-Interference
Forcing the Secretary of HHS to negotiate with drug companies will hurt plan competition, drive up prices for many

Please find attached to this email an ERIC letter to the full Senate urging opposition to direct negotiations in the Medicare Part D Prescription Drug program. Part D has been highly successful since its implementation last year, satisfaction levels are high, and the cost of coverage has actually come down – due to competition, not government interference. ERIC believes that trying to force pharmaceutical companies to charge lower prices to Medicare Part D plans will result in higher prices for working families, higher prices for retirees in non-Medicare plans, and higher prices for veterans and active duty military personnel.

The Part D program is working – there is no reason to force the Secretary of HHS to meddle with the prices of drugs, and create the same problems we have in other Medicare programs. The current Part D structure allows competing pharmacy benefit managers, who are experts at negotiating with drug companies, to offer plans that vary so seniors have the choice of an affordable plan that is best-tailored for them. There is significant research that suggests direct negotiations may have a negligible effect on Part D drug prices, making the entire issue seem counter-productive. Why is Congress trying to subvert a program that is functioning effectively, while 44 million Americans have no health insurance at all? We should be focusing on strategies that have proven effective at lowering costs and increasing coverage – improving use of technology in the healthcare field, increasing transparency in healthcare quality and costs, giving healthcare consumers incentive to stay healthy and be smart shoppers, and many other real solutions.

ERIC’s Health Policy Committee opposes legislation that will result in higher healthcare costs, and does not support direct government negotiations in Part D.

Text Files:

ERIC Non-Interference Letter to Senate

Back to Previous Page