Senators Snowe, Dorgan on Drug Manufacturers Deal

Will Help Curb Cost of Health Care Reform

June 22, 2009 -- Washington, D.C. -- Today, U.S. Senators Olympia J. Snowe (R-Maine) and Byron Dorgan (D-N.D.), sponsors of the Pharmaceutical Market Access and Drug Safety Act, welcomed the decision of the Pharmaceutical Research and Manufacturers of America (PhRMA) to contribute $80 billion over the next 10 years to improve drug benefits for seniors under Medicare. The Senators said this was a first step, and urged Congress to continue to work to reduce prescription drug costs for Americans.

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"In the face of escalating prescription drug prices and an uncertain economy, far too many seniors on fixed incomes have been unable to afford to take their medications as prescribed, so the President's announcement of a new agreement with pharmaceutical manufacturers is a step forward," Senator Snowe said. "The industry has made a commitment, including an agreement to extend a 50 percent discount to Medicare drug plans for medications used by beneficiaries when they are in the coverage gap - the "donut hole." It is critical those savings are realized by consumers."

"Today’s announcement is a step in the right direction, but we need to go further and ensure prescription drugs are affordable for all Americans. More can be done to put downward pressure on the high cost of prescription drugs in our country," said Senator Dorgan. "Even with PhRMA’s offer to help seniors, American consumers will continue to pay the highest price for prescription drugs in the world. Allowing consumers and pharmacies access to less-expensive, FDA-approved prescription drugs from other countries would save American consumers $50 billion over the next decade, according to Congressional Budget Office estimates."

Senator Snowe noted that the commitment to savings reflected a modest percentage of the over $220 billion in annual spending on prescription drugs in the U.S., and that health reform could substantially increase such drug sales.

"The fact is, that while the announced savings are substantial, they amount to less than 4 percent of our nation's annual prescription drug spending, and when you consider that other developed nations pay 35-55% less for their medications, it certainly doesn't close the gap much," Senator Snowe continued. "In addition, if seniors are able to purchase medications when in the "donut hole," and as we expand coverage to nearly 70 million Americans who lack a comprehensive health plan - the savings offered here appear to be more than offset by new drug sales."

"Health care costs are skyrocketing, and we should not lose this momentum to push for lower-priced prescription drugs," said Senator Dorgan. "It’s past time that the Congress should enact legislation allowing for the safe importation of FDA-approved prescription drugs being sold for a fraction of the price being charged to American consumers."

This Congress, Senators Snowe and Dorgan have introduced the Pharmaceutical Market Access and Drug Safety Act, bipartisan legislation to allow American consumers to safely import lower-priced, Food and Drug Administration-approved drugs from other countries. Senators Snowe and Dorgan said their legislation will bring consumers immediate relief and will ultimately force the pharmaceutical industry to reduce drug prices in the United States.

Source: Senator Olympia J. Snowe