[Congressional Record Volume 146, Number 37 (Wednesday, March 29, 2000)]
[Senate]
[Pages S1862-S1863]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        PRESCRIPTION DRUG COSTS

  Mr. GORTON. Mr. President, good health is one of life's greatest 
blessings. Over the last 25 years, there has been a tremendous change 
for the better in the delivery of health care. New drugs help to 
prevent heart disease and provide better treatments for cancer, 
allergies, depression, and many other debilitating conditions. In 
short, prescription drugs can help people live longer, lead healthier, 
happier, more productive lives--and can help lower the overall cost of 
health care. We all applaud.
  The United States leads the world in the development of new drugs. 
Almost half of the new drugs developed in the last 25 years were 
created in the USA.
  But new drugs are expensive to develop. Only one of every five 
candidate medicines will turn out to be effective, be approved by the 
FDA and make it to

[[Page S1863]]

drug store shelves. Last year, the drug industry spent $24 billion on 
research and development. U.S. taxpayers also invest $18 billion every 
year in the National Institutes of Health, which provides grants for 
basic health research. Drug companies that are willing to take on the 
risk of developing new treatments receive tax credits for their 
research and development costs.
  Yet when American consumers pick up their prescription at the 
drugstore they pay again for research and development in the form of 
higher prices. Why? Every other developed country imposes some form of 
price control. Those countries pay for the cost of manufacturing the 
drug, which is normal, and maybe some profit; but they don't even come 
close to paying a fair share of the research and development costs of 
new drugs developed in the United States.
  So when some Americans get sick, they can't afford the medicine they 
need to stay healthy. Instead they go without or they ration medicine. 
If they are able to travel, Americans cross the borders to Canada or 
Mexico to buy for much less, the prescriptions they need to stay 
healthy.
  I was curious to know just how much my constituents were savings by 
traveling to Canada. My office recently conducted an informal study 
comparing the prices of the top ten most commonly prescribed 
prescription drugs in several Washington state retail drug stores to 
the price paid in a typical Canadian pharmacy. I was astounded by the 
results: on average prices are 64% lower in Canada.
  Here are a few examples: The average cost of 30 pills of Zocor, which 
used to treat high cholesterol, is $76 in our state, in Canada it costs 
$38; Premerin, an estrogen replacement therapy used by many women, is 
$26 in our state and $10.50 just across the border; and a popular new 
allergy treatment, Claritin, is just $34 in Canada but almost $80 in 
Washington State.
  During last week's break, I spent time talking with seniors, doctors, 
hospital administrators, and others about the cost of prescription 
drugs. All expressed their concern about the growing amount spent on 
medicine and the ability of people to continue to have access to the 
medication that keeps them healthy.
  While this debate has properly focused a lot of attention on 
uninsured seniors and their daily struggle to pay for needed 
medications, the costs of prescription drugs affect every American--
even those with health insurance coverage. Drug spending is a growing 
part of our overall health care costs. The rising cost of prescription 
drugs is one of the biggest problems facing health plans, hospitals and 
others in the health care field.
  Obviously, American drug companies have to pay for this huge amount 
of research and development and the years that it takes to get these 
drugs licensed. But, what I am outraged about is a set of foreign 
policies that means that Americans who by drugs that were developed in 
America pay substantially more for those drugs than the same 
manufacturers sell--them for in Canada or Mexico. I think that is 
unconscionable. Those countries are riding on our research and 
development.
  The cost issue is one important part of the debate as we talk about 
modernizing the Medicare program to include a prescription drug 
benefit. I do think that Medicare should be updated and that 
prescription drugs should be covered under the program. Expanding this 
benefit, however, must be done responsibly--it must not jeopardize the 
solvency of the current program and that benefits now available to 
seniors. It is also fairly contentious. Most agree that we should add a 
drug benefit to Medicare, however, good people have honest 
disagreements about the best way to do it. Addressing cost is something 
we can do now.
  It is no fair to the American consumer to let other countries get 
away with policies that make drug companies sell their products cheaper 
in their country because they don't want to pay for any of the 
development costs. It's not right, and I will work actively to see that 
Americans are not overcharged.
  Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. LEAHY. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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