[Congressional Record Volume 144, Number 135 (Thursday, October 1, 1998)]
[Extensions of Remarks]
[Pages E1866-E1867]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       PRESCRIPTION DRUG PRICING

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                           HON. MARION BERRY

                              of arkansas

                    in the house of representatives

                       Thursday, October 1, 1998

  Mr. BERRY. Mr. Speaker, I rise today to talk about an issue of 
importance to everyone across this country, especially our seniors.
  Let me start by telling you about an 81-year-old woman. Her name is 
Mary Carson, who lives in my District in Jonesboro. She is presently 
taking 10 prescription drugs to treat blood blots, blood pressure, 
nervousness, and arthritis. Although Medicaid covers the cost of some 
of her prescription drugs, Ms. Carson still spends $80 to $200 monthly 
on her medications--up to almost half of her monthly income. Ms. 
Carson's only source of income is

[[Page E1867]]

her $416 Social Security check. Because of the high costs. Ms. Carson 
has had to skip or cut back on medications. She is only taking half of 
her prescribed blood thinner, and has had to skip her arthritis 
medicine because she was not able to fill the prescription.
  Mr. Speaker, unfortunately, Ms. Carson's problem is a common one for 
seniors across my District and across the country. Because of the high 
cost of prescription drugs, seniors often have to take half of what the 
doctor has told them to. Because of the high cost of prescription 
drugs, seniors often have to choose between taking their medicine and 
paying for food or their electricity. And because of the high cost of 
prescription drugs, our seniors are dying because they are too proud to 
ask their children to help them buy their medication.
  Studies that have been done for several Members of Congress, 
including myself, over the last several months have shown, the prices 
seniors and other consumers are charged are on the average 106 percent 
more than what pharmaceutical companies charge their favored customers 
such as HMOs, insurance companies and the Federal Government. This just 
doesn't seem fair to me when you think about the fact that according to 
Industry ratings of Fortune 500 companies--pharmaceutical companies are 
the most profitable businesses in existence. They made $24.5 billion in 
profits last year. Pharmaceutical companies had a 17.2 percent return 
on revenues. Telecommunication companies, 8.1 percent; computers and 
office equipment manufacturers, 7.3 percent; food and drug stores made 
a whopping 1.7 percent.
  One might think the success of pharmaceutical companies would be of 
tremendous benefit to American consumers. The reward: This year 
consumers have faced the highest two, monthly increases in prescription 
drug prices on record.
  Earlier this week, I chaired the first meeting of the Prescription 
Drug Task Force because of the increasing importance of the issue. 
Also, last week I introduced legislation with Congressman Tom Allen 
that would allow senior citizens who are Medicare beneficiaries to 
purchase prescription drugs at the low prices available to Federal 
agencies under the Federal Supply Schedule.
  For the remainder of this session of Congress and continuing into the 
106th Congress, the task force will work to bring attention to issues 
involving the costs and availability of prescription drugs. The task 
force will serve the purpose of complementing our legislation and is 
open to finding new policy recommendations. It will be an advocate for 
consumers and ensuring competition within the industry.
  All Members of Congress should stop and think about the blatant 
unfairness seniors face every day when they go to purchase their 
prescription drugs--medication they need to stay well and to stay 
alive. This is not an issue that will just go away. We should stand up 
for our seniors who are getting ripped off by pharmaceutical companies 
and ensure that they are not charged more than they should be for their 
medication.

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