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Medicare Drug Program News

Large Majority of Americans Want Medicare to Negotiate Better Drug Prices

Democrats have pledged congressional action to allow it

December 11, 2006 – An overwhelming majority of Americans – Democrats, independents and Republicans - support Congressional action that will allow Medicare to negotiate with pharmaceutical companies for lower drug prices for senior citizens, according to a new poll released by the Kaiser Family Foundation. It is a pledge Democrats made in the recent congressional elections.

Click here to the Daily Health Policy Report - KaiserNetwork.orgU.S. Residents Across Political Spectrum Support Government Price Negotiations for Medicare Prescription Drugs, Survey Finds

Eighty-five percent of U.S. residents support allowing government negotiation of prescription drug prices for the Medicare drug benefit, according to a Kaiser Family Foundation survey released Friday, the Washington Post reports (Lee, Washington Post, 12/9).

 

Related Stories

 
 

Most Senior Citizens Say Medicare Drug Plans have Saved Them Money

Seniors pleased with Medicare Modernization Act (MMA) that created drug benefit has increased from 26% in 2004 to 47%

November 21, 2006 – According to the latest WSJ Online/Harris Interactive Health-Care Poll, the Medicare Part D drug benefit has been highly successful among senior citizens in its first year. Most who are enrolled in a Medicare drug plan say they are satisfied with their current plan (75%) and are not likely to switch next year (73%). In fact, large majorities say their plans have been easy to use (82%) and have saved them money (70%). Read more...

America's Spending for Prescription Drugs Almost Doubled in Five Years

In 2003 2.8 billion outpatient drugs cost Americans $178 billion

November 13, 2006 – In just five years – 1999 through 2003 – consumer spending on outpatient prescription drugs nearly doubled. It rose from $94 million in 1999 to a staggering $178 billion in 2003. Part of the increase, says the Agency for Healthcare Research and Quality, was caused by Americans buying an increasing share of brand-name drugs. Read more...

Bush Administration Does Not Want to Negotiate Medicare Drug Prices

HHS Secretary tells New York Times he sees no compromise

November 13, 2006 – The Bush administration will "strenuously oppose" legislation authorizing Health & Human Services to negotiate for better Medicare drug prices from the drug companies, according to a report today by Robert Pear in the New York Times. Read more...

Senior Citizen Politics

Senior Citizens Certain to See Lower Priced Drugs with Democrat Wins

Other than Iraq War, senior issues may have been most important to voters

By Tucker Sutherland, editor

November 8, 2006 – The results from yesterday's election showing Democrats gaining control of the House of Representatives and close to control of the Senate signals major changes ahead that directly impact senior citizens. First, the price of prescription drugs is going to go down. And this was the final nail in the coffin that contains the private accounts proposed by President Bush for Social Security. "Tonight we have made history; now let us make progress," said House Democratic leader Nancy Pelosi, who is now destined to be the first female Speaker of the House and most powerful woman in the history of the U.S. government. Read more...


Read the latest news on Medicare or Medicare Drug Program

 

For the survey, the Kaiser Family Foundation and the Harvard School of Public Health polled a nationally representative sample of 1,867 adults from Nov. 9 through Nov. 19.

The survey aimed to gauge U.S. residents' priorities and views on health issues as Democrats take control of Congress and the 2008 presidential campaign begins to form.

The survey found that 92% of Democrats, 85% of Independents and 74% of Republicans favor government negotiation of drug prices under Medicare.

About 80% of U.S. residents believe drug price negotiations will reduce the cost of medications, while 31% believe it will result in less research and development by U.S. drug companies (Kaiser Family Foundation release, 12/8).

According to the Post, the survey's findings suggest "there will be considerable political pressure on the next Congress" to act on legislation that would allow government negotiations for Medicare drugs.

Those who oppose such negotiations say government involvement "could be logistically difficult and would not necessarily lower drug prices," according to the Post. In addition, opponents say that price negotiations could limit beneficiaries' choices of medications if some medications are favored over others to obtain discounts and that lobbyists might influence which drugs are available.

House Speaker-elect Nancy Pelosi (D-Calif.) on Friday said Democrats would pass legislation within the first 100 hours of the new Congress directing the Bush administration to use its bargaining power to negotiate Medicare drug discounts. The Bush administration opposes efforts to require such negotiations (Lee, Washington Post, 12/9).

Additional Findings

When asked to pick their top health care priority, 35% of people said expanding coverage for the uninsured and 30% said reducing health costs, according to the survey.

About 18% said improving the Medicare drug benefit is their top health care priority, while 6% said their top health care priority is reducing spending on government health programs.

However, the top public policy priority overall is the war in Iraq, with 46% of U.S. residents naming it as one of two issues they would like Congress and the president to address next year. The survey also found:

 

Want Drugs from Canada, Too

There is also widespread support for permitting Americans to buy lower-priced prescription drugs from Canada (79%, including 55% strongly and 24% somewhat).  

 

  ● 79% of U.S. residents support allowing residents to purchase lower-cost prescription drugs from Canada;

  ● 73% of Democrats said they would like a presidential candidate to introduce a health proposal that makes a major effort to provide near-universal health coverage, compared with 18% who would prefer a more limited plan and 7% who favor a plan that maintains status quo;

  ● 55% of Independents and 37% of Republicans would like to see a major health care proposal by a presidential candidate;

  ● A majority of U.S. residents said the prices of a number of health care services are unreasonable compared with other goods and services, including hospital charges (86% ), brand name drug prices (83%), health insurance premiums (70%), nursing home charges (63%) and physician fees (59%);

  ● 20% of U.S. residents said the prices of generic drugs are unreasonable;

  ● Among those who say health-related prices are unreasonable, 86% of Democrats, 74% of Independents and 65% of Republicans believe government should try to address the issue; and

  ● When asked to choose between two approaches, 59% support direct government action to address health care costs, while 34% support a more market-based solution (Kaiser Family Foundation release, 12/8).

 

Overall, what message would you send to policymakers in Washington? Would you say the new Medicare drug benefit…? (%)

 
 

Total

Under 65

65+

 

8

7

12

Is working well and no real changes are needed

43

43

41

Could be improved with some minor changes

27

27

28

Is not working well and needs major changes

8

7

10

Is not working well and should be repealed

14

15

9

Don’t know

*

*

1

Refused

 

Comments

Kaiser Family Foundation President and CEO Drew Altman said, "Many of the health policy proposals currently on the congressional agenda are broadly popular with the public, from drug price negotiation to reimportation to children's health insurance."

He added, "Health care is well positioned to emerge as a top national issue in 2008 and beyond, but only if the situation in Iraq stabilizes and presidential candidates spark a national discussion about health reform."

Mollyann Brodie, a Kaiser Family Foundation vice president and director of Kaiser's Public Opinion and Media Research program, said, "The public shows some appetite for the kind of broader health measures that have largely been absent from the agenda for many years, but that interest could wane in a full-fledged debate when critics mount opposition campaigns or if people come to believe that a plan would threaten their own medical arrangements."

Robert J. Blendon, professor of health policy and political analysis at the Harvard School of Public Health and the Kennedy School of Government, said, "These findings suggest that we are likely to see more public pressure on Congress to address the health care cost issue in the years ahead" (Kaiser Family Foundation News Release, 12/8).

  ● The Kaiser Family Foundation survey is available online.
  ● A webcast of an event to release the survey findings, as well as a second briefing sponsored by the Alliance for Health Reform and the Kaiser Family Foundation featuring key White House and Congressional health policy advisers, is available online on kaisernetwork.org.

 

"Reprinted with permission from kaisernetwork.org You can view the entire Kaiser Daily Health Policy Report, search the archives, and sign up for email delivery at www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation. © 2006 Advisory Board Company and Kaiser Family Foundation. All rights reserved.”

 

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