[Congressional Record Volume 142, Number 31 (Friday, March 8, 1996)]
[Extensions of Remarks]
[Pages E317-E318]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




THE PRESCRIPTION DRUG CONSUMER INFORMATION ACT WILL HELP SENIORS REDUCE 
                        THEIR HEALTH CARE COSTS

                                 ______


                         HON. RICHARD J. DURBIN

                              of illinois

                    in the house of representatives

                         Friday, March 8, 1996

  Mr. DURBIN. Mr. Speaker, as the price of health care continues to 
rise, spending on prescription drugs becomes an ever-increasing burden 
for millions of Americans. A recent study by the PRIME Institute at the 
University of Minnesota College of Pharmacy shows that producer list 
prices for the 500 most prescribed drugs climbed an average of 4.6 
percent in 1995. This 4.6 percent increase exceeds the 2.6 percent 
increase in Social Security benefits over the past year. Furthermore, 
the increase in prescription drug prices is more than twice the 
increase in the 1995 producer price index. As the prices of 
prescription drugs continue to outpace the general cost of living for 
seniors, these Americans on fixed incomes often face the choice between 
food and medicine.
  Consumers and their doctors need comparative information about 
prescription drug prices to help them reduce spending on prescription 
drugs without compromising quality. But comparative information is not 
readily available. Prescription drugs do not sit on grocery shelves 
with separate price tags under each item. Even doctors often do not 
know the prices of medications and whether a less expensive but equally 
effective alternative is available.
  The Prescription Drug Consumer Information Act of 1996 will make this 
essential information more available by directing the Secretary of 
Health and Human Services [HHS] to publish annually an easy-to-
understand consumer guide to prescription drug prices that presents 
price and cost-effectiveness information by therapeutic category for 
easy comparison to other drugs and to other therapies.
  The guide will provide consumers with the information they need to 
intelligently discuss the cost effectiveness of various prescription 
drug options with their doctors and pharmacists. The guide will also 
provide doctors with information that will help them determine the most 
cost-effective therapies for their patients. This information is not 
available anywhere else at this time. The increased availability of 
price information could also unleash free market forces to help reduce 
the cost of medications that are excessively priced.
  This legislation directs the Secretary of HHS to publish a consumer 
guide to prescription drug prices annually, beginning no later than 2 
years after the legislation is enacted. The guide will be made 
available electronically--that is, through computer networks--and in 
print. The Secretary may publish periodic bulletins that reflect 
changes in the prices in the consumer guide between the dates of annual

[[Page E318]]

publication of the guide. The consumer guide will be provided to public 
libraries free of charge. The Secretary will also provide the guide to 
individuals and other organizations for a reasonable fee which is not 
to exceed the cost of printing and distributing the guide. 
Organizations representing consumers, seniors, and health professionals 
will be encouraged to make the consumers guide widely available.
  This legislation offers consumers a new tool to help them manage 
their prescription drug costs. Armed with price information, they will 
be in a better position to save money without cutting corners on their 
health care.
  I strongly urge my colleagues on both sides of the aisle to join me 
in cosponsoring this legislation to help Americans fight the rising 
cost of health care.

                          ____________________