WEEKLY SENATE UPDATE

By U.S. Senator Olympia J. Snowe

For the week of February 4 through  February 11, 2005

A PRESCRIPTION FOR LOWERING DRUG PRICES

It seems like every week a new, breakthrough prescription drug becomes available. Medical science continues to make advances that would have been unimaginable a generation ago, and the development of new pharmaceuticals is no exception.  Today’s medicines have enormous power to improve and extend life, but first those drugs must get to the patients who need them.  A lifesaving drug cannot save lives unless it is affordable, and as the prices of prescription drugs continues to rise out of control, more and more Americans, especially seniors and the uninsured, are unable to take advantage of new medicines.  Also, the recent revelation that the new Medicare prescription drug benefit will cost taxpayers more than $150 billion more than originally thought makes containing drug prices even more urgent.   I recently introduced two bills that, if enacted, will go a long way toward bringing down skyrocketing prescription drug prices and ensuring availability.

            We have an obligation and a responsibility to make sure we do everything we can to provide accessible and affordable prescription drugs, and one way to do that is through a safe and reliable drug importation system.  Given our proximity to Canada, Mainers know very well that people in other countries use the very same medications we do, made in the very same plants, yet they pay 35-55% less.  On February 9th, I introduced comprehensive, bipartisan prescription drug importation legislation, the Pharmaceutical Market Access and Drug Safety Act, with Senator Byron Dorgan (D-ND).   

             One of the most common arguments made by opponents of prescription drug importation is that we cannot allow it because we cannot ensure the safety of imported drugs.  First of all, my bill will allow the importation of Food and Drug Administration (FDA)-approved drugs only and imported drugs will only come from countries with regulatory agencies comparable to the FDA.  In fact, many of the medications in question come from the same FDA-inspected plants which produce drugs for the U.S. market.  It doesn’t make sense to prohibit registered importers from importing life-saving medicines from other countries with safety standards equal to ours, and in some cases even stricter.  Also, imported drugs must be tracked, examined, and properly labeled by licensed pharmacists.  Anticounterfeiting measures will be employed to secure the drug supply, and improved labeling requirements will make tracking and even drug recalls far more effective. 

Given the fact that we manage to ensure the safety of other imported products such as food, I simply refuse to believe that we in America are not up to the task of creating a safe, reliable drug importation system.  The need for this legislation is undeniable -- and the status-quo is indefensible -- because millions of Americans who don’t have health insurance are paying the highest prices for prescription drugs of any country in the industrialized world. 

            In another effort to directly address the crisis of skyrocketing drug costs, on February 1st I introduced the Medicare Enhancement for Needed Drugs (MEND) Act with Senator Ron Wyden (D-OR).  This legislation, cosponsored by Senators Russell Feingold (D-Wisc.), Dianne Feinstein (D-Calif.) and John McCain (R-Ariz.), would give the Secretary of the U.S. Department of Health and Human Services (HHS) the specific authority to negotiate lower prices for drug purchases through the Medicare prescription drug benefit.  By granting the Secretary the authority to bargain for better prices in the same way that private insurers and private businesses negotiate for lower costs in bulk, we can level the playing field for seniors.  Outgoing HHS Secretary Thompson has publicly voiced his support for this authority, and incoming Secretary Mike Leavitt has indicated to me that he is open to the idea.  It doesn’t make sense to wait until 2006 when the Medicare prescription drug benefit comes into effect -- we must utilize this tool to bring drug costs down now.

            The human cost of skyrocketing prescription drug prices is seen every day in our nation’s hospitals.  We see it in Maine and across the country - Americans whose lives are harmed or shortened by the inability to afford lifesaving medications.  On top of that, if prices are allowed to increase unchecked, the very drug benefit the Congress passed to provide seniors with relief could become threatened.  Despite the dire possibilities, I am encouraged by the broad, bipartisan support in the Senate for the bills I have introduced to deal with this problem.  I urge my colleagues to join me and pass this legislation as soon as possible -- there is no doubt our constituents need and expect us to act.