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Senior Citizen Politics
Veterans are Satisfied with Prescription Drug
Program that Provides Better Prices
New group seeking ideas on improving vet health
care in the future
 January 17, 2007 – While Democrats were touting the
Department of Veterans Affairs prescription drug program as a model for
negotiating better prices on drugs, the Republicans were saying this is
possible because the drug program for vets is so limited and will not
serve the needs of seniors. Veteran groups, however, say America's
veterans are happy with their program. But, to even improve health care
for veterans, a new group is touring the country seeking "innovative,
long-term strategies." In the daily report on Medicare by
KaiserNetwork.org there is also confirmation that President Bush intends
to veto the House passed drug bill.
 Medicare:
Groups React to Comments on Department of Veterans Affairs Prescription
Drug Program
Some groups that represent veterans this week said
that most participants in the
Department of
Veterans Affairs prescription drug program are satisfied,
despite criticism of the program from House Republicans during debate
over a recently
passed
bill (HR
4) that would require the
HHS
secretary to negotiate directly with pharmaceutical companies on prices
for medications under the Medicare prescription drug benefit,
The Hill
reports.
The VA program negotiates directly with
pharmaceutical companies on prices for medications. Under the Medicare
prescription drug benefit, private health insurers negotiate with
pharmaceutical companies for prices on medications.
During debate over the bill, some House Republicans
said that the VA program limited access to medications and pharmacies
for participants.
● Rep. Paul Ryan (R-Wis.), said, "Do we want to
have Medicare look like the VA?" He added, "Do we want to replicate that
kind of a system for Medicare? I think the answer is no."
● Rep. Pete Sessions (R-Texas) said, "We
understand that the VA does not serve the best interest of seniors in
this country."
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Related Stories |
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Opinion Pieces Examine Medicare Prescription Drug
Negotiation Bill
Everyone sees the problem but has a different idea on
fixing it
January
16, 2007 - Several newspapers recently published editorials and opinion
pieces that discussed the bill passed last week by the House that would
require the
HHS secretary to negotiate
directly with pharmaceutical companies on prices for medications under
the Medicare prescription drug benefit. Summaries of some appear below.
Read more...
House Passes Bill to Mandate HHS Negotiations on
Medicare Drug Prices
January 12, 2007 - The House of Representative
early this afternoon passed HR 4, which mandates the Secretary of Health
& Human Services negotiate with pharmaceutical companies for better
prices for senior citizens in the Medicare drug program.
Read more...
Senior Citizens Pay More for Drugs Because Congress
Refuses to Allow Medicare to Negotiate Like VA
Consumer Union finds seniors in donut hole can
do better shopping around for best price
October 12, 2006 – Consumers Union released a
report this week highlighting a study that found senior citizens who
have fallen into the Medicare Part D "donut hole" can get better prices
shopping around than through their Medicare drug plan. The headline was
"Floridians in Medicare Donut Hole Can Get Better Drug Prices." What the
headline should have been, however, is "All Senior Citizens Paying Big
Drug Price Because Medicare Does Not Negotiate Prices Like Veterans
Administration."
Read
more...
Read more
on
Politics for Senior Citizens |
|
|
Price for Six Drugs Compared |
|
Veterans Administration |
$22.06 |
|
Medicare Part D Full Price |
$48.38 |
|
Average Retail |
$55.86 |
Dennis Cullinan, director of the
National
Legislative Service for the Veterans of Foreign Wars, said
that the VA program "serves veterans well." He added, "It's a vital
benefit for a lot of veterans. A lot of veterans would not have access
to their drugs" without the VA program.
Steve Robertson, director of legislative affairs at
the
American Legion,
acknowledged that the "VA's formulary is very, very limited." However,
he said, "Until people start complaining about the formulary, maybe
they're pretty pleased with the way the process is set up."
Robertson also said that the VA program has an
appeals process for participants who seek medications not included on
the formulary. The American Legion opposed the House bill over concerns
that the legislation would lead to increased medication costs for the VA
program (Young, The Hill, 1/17).
Veterans Coalition Forms Commission To Seek
Advice on Long-Term Plan for Health Care
The
Veterans Coalition
has created a commission that will tour the country to gather advice
from veterans, state officials, labor and business leaders, and the
public on "innovative, long-term strategies" to ensure improved medical
care and other benefits for veterans of the Iraq war and other 21st
century conflicts, the
AP/Florida
Times-Union reports.
The Commission on the Future for America's Veterans
plans to discuss issues including health care, benefits, transition from
military to civilian life, catastrophic disabilities and the needs of
National Guard members and reservists. The commission's tour first will
stop in West Virginia, a state with one of the highest concentrations of
veterans in the nation.
Managing Commissioner Harry Walters said that,
while the
Department of
Veterans Affairs currently provides high-quality, low-cost
care, the department has "no vision for the future."
He added, "This era of veterans has unique calls
for medical services and benefits" because improved technology is
allowing veterans to live longer with amputations, head trauma and other
serious injuries. Walters said public-private partnerships regarding
facilities and research could be part of the solution.
Commission Executive Director David Sevier said the
VA "budget won't allow for the incremental increases that will be needed
over the next 20 years." Sevier said that rather than hiring additional
claims processors to address the several hundred thousand benefit claims
that are pending, a long-term strategy for providing benefits is needed.
The commission said it plans to release its
long-term plan by spring 2008 (Ramsey, AP/Florida Times-Union, 1/15).
White House Reiterates Veto Threat
In related news, White House spokesperson Tony Fratto on Tuesday
reiterated that President Bush would veto the House bill.
"The only way negotiation could be effective is if
they also gave government the power to limit drugs," Fratto said,
adding, "It would also have the huge additional drawback of limiting
choice to seniors."
Fratto said that private health insurers, not the
HHS secretary, have the ability to negotiate the lowest prices for
medications under the Medicare prescription drug benefit. He added, "The
better deal they can get from drug manufacturers, the better chance they
have to have a market-competitive drug plan that seniors will want to
subscribe to" (Barrios,
Long Island Newsday,
1/17).
Additional Coverage
In other Medicare news, the
Boston Globe
on Wednesday examined factors that contribute to prescription drug
prices. According to Stephen Schondelemeyer, a University of Minnesota
researcher who tracks prescription drug prices, brand-name
pharmaceutical companies spend about 31% of revenue on sales, marketing
and administrative costs; 30% on manufacturing, shipping and
distribution costs; 13% on research and development costs; and 6% on
taxes and liability protection costs.
Senate Health,
Education, Labor and Pensions Committee Chair Edward Kennedy
(D-Mass.) said that passage of legislation similar to the House bill in
the Senate would require a revision to allow, but not require, the HHS
secretary to negotiate directly with pharmaceutical companies on prices
for medications under the Medicare prescription drug benefit (Henderson,
Boston Globe, 1/17).
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