[Congressional Record Volume 146, Number 42 (Thursday, April 6, 2000)]
[House]
[Pages H1945-H1946]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       BLAME CANADA, BLAME CANADA

  The SPEAKER pro tempore (Mr. Shimkus). Under a previous order of the 
House, the gentleman from Maine (Mr. Allen) is recognized for 5 
minutes.
  Mr. ALLEN. Mr. Speaker, Blame Canada, Blame Canada. It is the Oscar-
nominated song from the movie South Park, Blame Canada, Blame Canada. 
It is also the latest defensive ad campaign by the pharmaceutical 
industry's front group, the so-called Citizens for Better Medicare. 
Frankly, both belong in the garbage.
  In the movie, the mothers of South Park are revolted by the dirty 
words their children learn at the movies but instead of taking 
responsibility themselves, they blame Canada.
  In the ads, the drug industry tries to divert attention from its 
discriminatory pricing practices but instead of taking responsibility 
themselves, they blame Canada.
  The pharmaceutical industry ads are running in the northern border 
States and elsewhere in an effort to convince consumers that the 
Canadian health care system is bad because prescription drugs are 
cheaper for Canadian seniors than they are for American seniors.
  So let me thank the pharmaceutical industry for making the point that 
they charge Canadian seniors far less than they charge American seniors 
for the same drugs from the same manufacturers in the same quantities. 
It is what we have been saying all along.
  Does the innovation of Canadian pharmaceutical companies suffer under 
the Canadian system? No. Let me read just a few statements.
  Here is a statement, and I quote, in the last 10 years the rate of 
growth in R&D spending by Pharmaceutical Manufacturers Association of 
Canada, member companies, has almost doubled that of the United States. 
That is a statement put out on March 2, 1999, a press release from the 
Pharmaceutical Manufacturers Association of Canada.
  In June of 1999, the same organization talked about the massive 
research efforts taking place across Canada, and in 1998, the 
Pharmaceutical Manufacturers Association of Canada's innovative 
pharmaceutical companies funded an estimated $900 million in medical 
research and development.
  Since 1987 R&D spending by the PMAC member companies have grown by 
almost 700 percent, almost twice the growth rate of the United States 
in the same period of time. Yet, the pharmaceutical industry is trying 
to tell people in the United States that R&D will not happen in Canada 
because they are not earning enough money up there.
  Yesterday my office received a call from the Canadian Embassy, and 
the Canadians are perplexed because they do not understand why U.S. 
companies are running TV ads trashing the Canadian health care system. 
Imagine what the Canadians think. The most profitable industry in the 
country is upset that they are not able to charge as much in Canada for 
prescription drugs and engage in the same price discrimination in 
Canada as they do in the United States.
  Speaking of profits, I urge every Member to check out the latest 
Fortune 500 list which shows once again that the pharmaceutical 
industry is the most profitable industry in the country, number one in 
return on revenues at 18.6 percent, number one in return on assets at 
16.5 percent, and number one in return on equity at 35.8 percent. One 
cannot do any better than that.
  Even with all the attention on their price discrimination against 
seniors, the pharmaceutical industry continues to be the most 
profitable industry in the country, charging the highest

[[Page H1946]]

prices in the world to people who can least afford it, our seniors who 
do not have any prescription drug coverage on Medicare.
  Studies show that seniors in this country pay 72 percent on average 
more than Canadians. We pay 102 percent more than Mexicans for the same 
drugs in the same quantity from the same manufacturer. Why do seniors 
have to choose between food and medicine?
  Industry says, blame Canada.
  Why do seniors have to cut their pills in half in order to take them?
  The industry says, blame Canada.
  Why do seniors have to go across the border to buy affordable 
prescription drugs?
  The industry says, blame Canada.
  Democrats in the House have two approaches. We have legislation to 
establish a Medicare prescription drug benefit to cover all seniors on 
Medicare. We have legislation which I have introduced which would 
provide a discount for all Medicare beneficiaries in the costs of their 
prescription drugs. We have legislation from the gentleman from Vermont 
(Mr. Sanders) and the gentleman from Arkansas (Mr. Berry) to make sure 
that drugs that are sold in Canada can be brought into this country and 
sold to American seniors at reduced prices. Our seniors continue to 
suffer from price discrimination. They demand a Medicare prescription 
drug benefit that is universal, meaningful and affordable but instead 
of bringing equality to its pricing structure all the drug industry can 
come up with is Blame Canada, Blame Canada.

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