[Congressional Record Volume 144, Number 143 (Sunday, October 11, 1998)]
[Extensions of Remarks]
[Pages E2065-E2066]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        PRESCIPTION DRUG PRICING

                                 ______
                                 

                          HON. JOHN F. TIERNEY

                            of massachusetts

                    in the house of representatives

                        Friday, October 9, 1998

  Mr. TIERNEY. Mr. Speaker, and I would first like to thank my good 
friend from Maine, Tom Allen, for his work to end the gouging of prices 
for prescription drugs by pharmaceutical companies.
  We have heard horror stories about seniors forgoing food, electricity 
or other necessities in order to pay for their monthly medications. In 
some instances, seniors will choose one medication of the other, 
alternating each month, because they simply cannot afford to be buying 
everything they need. We have seen the profits of pharmaceutical 
companies skyrocket to nearly $20 billion a year. And there profits 
will continue to grow, at the expense of our nation's seniors. It is 
time to end this cycle of discrimination.
  In Massachusetts, we are fortunate to have a number of safety nets in 
place to help seniors with their prescription drug needs. Our state 
Medicaid system, MassHealth, protects the poorest of the poor. Our 
State Pharmacy Program provides up to $750 a year in prescription drug 
coverage. The State Legislature even passed a law in 1994 to require 
all Medicare HMO's to provide an optional prescription drug benefit. 
Approximately 75 percent of the 211,000 beneficiaries in the state 
enrolled in Medicare HMO's benefit from this option.
  However, there are many who fall through the cracks and for reasons 
beyond their control, are not eligible for any federal or state 
assistance.
  For example, Georgia LaPine from North Andover, MA is a 74 year old 
retiree who is completely dependant on her monthly Social Security 
check. She is on numerous medications, including three different asthma 
inhalers,

[[Page E2066]]

thyroid pills, nitroglycerine for a heart condition, and Lorazepam for 
her nerves. She cannot afford to purchase all of these medications each 
month. Subsequently, she was forced to forgo her heart medication, and 
has had trouble affording groceries. Georgia tries to put money aside 
each month to buy the medication she needs, but each time she foregoes 
any medication or doesn't eat properly, he condition worsens. She 
constantly worries about her monthly prescription requirements and as a 
result, her asthma and anxiety problems have worsened.
  And it is not only the seniors who suffer. Thousands of independent 
pharmacies go out of business each year because they simply cannot 
afford to purchase certain drugs from pharmaceutical companies. 
Pharmacists in my district care about their customers and have told me 
how painful it is to explain to a senior citizen why the medication 
that cost $15 last month now costs $65. But, if the pharmacy doesn't 
stock the medications, they will lose considerable business.
  Jack Collins of Lynn Fells Pharmacy in Saugus, MA, stated ``They know 
that we will expose them and their pricing policies . . . it's 
independent pharmacist who will take the time to explain to a senior 
citizen just how they are being ripped off. We are their enemies and 
they are detemined to eliminate us.'' He goes on to say that, ``If you 
and your colleagues in Congress don't stand up to this cartel and level 
the playing field on prescription pricing, the people in this country 
paying cash for their medicines will continue to neglect filling their 
prescriptions, necessitating more hospital visits and further driving 
the cost of health care through the roof.''
  It if becomes too late this session to act on legislation such as Mr. 
Allen's Prescription Drug Fairness for Seniors Act, I would urge my 
colleagues on both sides of the aisle to make this a priority for the 
106th Congress. This is not a partisan issue. Every district has 
seniors like Georgia LaPine and independent pharmacists like Jack 
Collins. We constantly talk about protecting seniors and helping small 
businesses. We simply cannot continue to provide pharmaceutical 
companies with research and development funding and close our eyes to 
discriminatory pricing schemes that target seniors, among others, or 
their exorbitant price increases. This legislation that we have 
introduced would benefit seniors and pharmacies by allowing them to 
purchase low-cost prescription drugs by taking advantage of the 
purchasing power of existing Federal Supply Schedule prices.
  This is a plan that is budget neutral, and which, given the drug 
manufacturers' uncommon profit margins, need not adversely affect 
prices in general. This is an effective and much-needed solution. I 
urge both the Republican and Democratic Leadership to make this issue a 
priority for the next session.

                          ____________________