[Congressional Record Volume 144, Number 6 (Wednesday, February 4, 1998)]
[House]
[Pages H302-H303]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     STOP MEDICARE OVERPAYMENT ACT

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Arkansas (Mr. Berry) is recognized for 5 minutes.
  Mr. BERRY. Mr. Speaker, I rise to request my colleagues' support for 
legislation I introduced yesterday to save the Medicare program almost 
half a billion dollars a year in unnecessary overpayments for 
prescription drugs.
  As the only pharmacist in the 105th Congress, let me first state that 
the price of these drugs is not due to the family pharmacist. The high 
price is set by the pharmaceutical manufacturers.
  Making the situation even worse, under current Medicare law, the 
program reimburses doctors who prescribe covered drugs for 95 percent 
of the ``sticker price'' quoted by pharmaceutical manufacturers, rather 
than the actual cost to the doctor of acquiring the drug.
  Furthermore, Medicare pays doctors for the cost of their expenses, 
overhead, consultation time, and for administering the drugs under the 
practice expense system, not to mention the close to $7 billion that 
Medicare spends each year to educate our Nation's doctors.
  A recent analysis by the Department of Health and Human Services 
Inspector General shows that Medicare is wasting millions each year 
under the current system, $447 million alone in 1996.
  Our patients deserve better. The Stop Medicare Overpayment Act, based 
on the President's fiscal year 1999 budget and included in a 
comprehensive antifraud proposal introduced by the gentleman from 
California (Mr. Stark) last year, will go a long way toward 
establishing a fair and adequate payment system.
  The Stop Medicare Overpayment Act is simple: Reimburse the doctors 
for what they paid for the drug. They already get paid for their office 
overhead, dispensation and ``professional services'' through the 
Medicare system. Why allow a small group of persons to reap a $447 
million windfall benefit each year?
  Seventy-five percent of the cost of these overpayments are coming 
directly out of the taxpayers' wallet. Twenty-five percent come 
directly from senior citizens who are forced to pay a higher Part B 
premium.
  My legislation will go a long way toward ending these overpayments. 
Unfortunately, it will not do anything to address the root of this 
problem: the high cost of prescription drugs charged by pharmaceutical 
companies.
  It is indeed unfortunate that here in the world's richest nation our 
seniors should be forced to choose between buying food or buying 
prescription drugs and that our pharmacies should be discriminated 
against by drug manufacturers.
  As Congress considers ways in which to reduce the $23 billion in 
Medicare fraud and abuse, my legislation should be first on the list. 
It is a sensible, responsible, and prudent approach to rein in 
unnecessary Medicare costs.
  I urge my colleagues to join me in support of this important 
initiative.

[[Page H303]]

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Connecticut (Mr. Shays) is recognized for 5 minutes.
  (Mr. SHAYS addressed the House. His remarks will appear hereafter in 
the Extensions of Remarks.)

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