<nobr>Apr 18, 2007</nobr>

ERIC Applauds Senate Holding the Line Against Drug Price Controls

THE ERISA INDUSTRY COMMITTEE
1400 L Street NW Suite 350 Washington, DC 20005-3509
Tel 202.789.1400 Fax 202.789.1120 http://www.eric.org
Advocating the Employee Benefit and Compensation Interests of America's Major Employers

ERIC Applauds Senate Holding the Line Against Drug Price Controls


FOR IMMEDIATE RELEASE


Washington, D.C. - ERIC applauds those Senate Members who held strong and voted against invoking cloture on The Medicare Prescription Drug Price Negotiation Act of 2007. ERIC Vice President for Health Policy Edwina Rogers said that the "Medicare Part D Prescription Drug Program has been highly successful since its implementation last year and that repealing the non-interference provision would inevitably result in higher prices for the private sector, working families, retirees in non-Medicare plans, veterans and active duty military personnel."


The Senate bill (S. 3) would allow the Secretary of Health and Human Services to negotiate drug prices with manufacturers, instead of making it a requirement. A provision included in the Medicare Modernization Act of 2003 prevents the federal government from interfering in negotiations between Part D plan participants and drug makers. The House-passed bill (H.R. 4), approved in January, would remove the provision and require the government to negotiate.


ERIC recently sent a letter to the full Senate urging opposition to direct negotiations in the drug program, saying, among other things, that significant research suggests that negotiations would have a negligible effect on Part D drug prices, and that competition has driven the cost of drug coverage lower than many predicted.


Rogers also added that "the focus should be on strategies that have proven effective at lowering costs and increasing coverage, such as improving the use of technology, increasing transparency in quality and costs, and giving consumers incentives to stay healthy and be smart shoppers."


The motion to invoke cloture fell five votes shy of the 60 votes needed to cut off debate. However, it is likely that the legislation will be brought up again this year.


For further information please contact James Gelfand, ERIC's Manager of Health Policy, at (202) 789-1400 or jgelfand@eric.org or ERIC's Manager of Communications Ted Godbout at (202) 789-1400 or tgodbout@eric.org.

<center>###</center>

ERIC is a non-profit association committed to representing the advancement of the employee retirement, health, and compensation plans of America's largest employers. ERIC's members provide benchmark retirement, health care coverage, compensation and other economic security benefits directly to tens of millions of active and retired workers and their families. ERIC has a strong interest in proposals affecting its members' ability to deliver those benefits, their cost and their effectiveness, as well as the role of those benefits in the American economy.

Back to Previous Page