[Congressional Record Volume 148, Number 17 (Tuesday, February 26, 2002)]
[House]
[Page H539]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 GOVERNORS' RESOLUTION ON GENERIC DRUGS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from New Jersey (Mr. Pallone) is recognized for 5 minutes.
  Mr. PALLONE. Madam Speaker, I rise this evening to bring attention to 
the Governors' resolution on generic drugs that is going to be offered 
by Governor Dean of Vermont at the National Governors Association 
conference taking place this week in Washington, D.C.
  Madam Speaker, after all is said and done, the high cost of 
prescription drugs still remains one of the most pressing health care 
issues confronting our country's senior citizens, employers, managed 
care plans, and State and Federal drug programs. It also remains clear 
that generic competition can have a dramatic impact on reducing 
pharmaceutical costs.
  There is a need, in my opinion, for statutory or legislative 
initiatives that allow timely access and availability of generic drugs. 
Frankly, Madam Speaker, Congress has been dragging its feet. Congress 
has been so negligent in ensuring proper entry of generics to the 
market that States are beginning to act on their own, as we see with 
the Governors' resolution.
  The Governors' resolution expresses concern about the 1984 Hatch-
Waxman Act. Part of the intent of the Hatch-Waxman Act was to lawfully 
improve consumer access to lower-priced generic drugs. The problem, 
Madam Speaker, is that loopholes within the Hatch-Waxman Act are being 
taken advantage of and preventing the availability of generic drugs to 
enter the market. Brand name companies have become proficient in 
manipulating the Hatch-Waxman law and launching campaigns to block or 
delay generic alternatives from reaching the market.
  The Governors are concerned in their resolution that these elements 
within the Hatch-Waxman Act may actually be contributing to the rising 
costs of prescription drugs, and the resolution asks Congress to 
explore this issue.
  In addition, the Governors raised the valid point that during this 
time of tight State budgets, a national deficit, and an economic 
recession States are burdened by Medicaid costs which are on the rise 
due to the soaring costs of prescription drugs. With prescription drug 
costs rising at a rate of up to 18 percent annually, States' Medicaid 
drug costs represent the fastest-growing health care expense for 
States, employers, and consumers across the Nation.
  USA Today reported that the Business for Affordable Medicine, a 
coalition of governors, business, and labor unions, stated that certain 
reforms to the Hatch-Waxman Act could save State Medicaid programs $600 
million in prescription drug costs over the next 3 years. According to 
the coalition, States spent about $1.2 billion in 2001 on 17 drugs, 
including the allergy medicine Claritin, the asthma drug Flovent, and 
the cancer treatment Lupron. The coalition said that the $600 million 
figure is the amount of savings that would occur if these 17 drugs were 
replaced by generic alternatives that would be allowed to enter the 
market.
  Madam Speaker, the inclusion of generic alternatives in the 
marketplace is great for consumers, employers, and government 
purchasers because generic competition provides access to less 
expensive, therapeutically equivalent generic versions of brand-name 
drugs.
  I fully support the Governor's resolution and the intent to improve 
access to generic drugs, and I encourage my colleagues in Congress to 
take the lead of the Governors here in Washington, D.C., and to pursue 
this important issue.

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