Sat, Jul 04, 2009

Washington

House OKs Medicare Rx cost shift

Bill orders government to work out prices directly with drug companies
The Associated Press
Tucson, Arizona | Published: 01.13.2007
WASHINGTON — Defying a veto threat, the House approved legislation Friday directing the government to negotiate with drug companies in an effort to lower prices for Medicare recipients.
Democrats, winding up an opening-week legislative rush after taking control of Congress, said the measure would help the nation's seniors.
The Bush administration called it an unwise government intrusion in a system that is already working well.
The 255-170 vote was short of the two-thirds margin that would be needed to override a veto. The legislation still must pass the Senate, where it could undergo significant changes or be defeated.
The Senate, meanwhile, regained momentum on ethics legislation after running aground Thursday on an effort to shine more light on special-projects earmarks.
Senators voted 87-0 Friday for a measure that would deny pensions to members of Congress convicted of serious crimes.
The House drug legislation directs the secretary of Health and Human Services to bargain directly with pharmaceutical companies, altering a fundamental provision of the 2003 law that created the Medicare drug benefit for seniors.
That Republican-inspired law specifically left government out of the pricing decisions and placed the negotiations over cost in the hands of drug companies and the private insurers that sponsor the Medicare plans.
"Let us not solely entrust the negotiations of drug prices to the very companies who profit from the sales of these drugs," said Rep. Jo Ann Emerson of Missouri, one of 24 Republicans to vote for the new legislation.
Not a single Democrat voted against the bill, and all 170 no votes were cast by Republicans.
The legislation underscored one of the more profound differences between the political parties — the Republicans' faith in the ability of the markets to best serve consumers and the Democrats' belief that government can sometimes do better.
"It allows the secretary to do what he was hired to do, to put the interest of the American people first," House Democratic Leader Steny Hoyer of Maryland said.
"If passed," countered Ron Lewis, R-Ky., "this bill would allow the federal government to get into the medicine cabinets of millions of Medicare beneficiaries across the country."
Under the drug program, seniors can choose among competing coverage plans offered by insurance companies. On Wednesday, the administration announced that 23.5 million had enrolled in stand-alone plans.