[Congressional Record Volume 148, Number 59 (Friday, May 10, 2002)]
[Senate]
[Pages S4192-S4193]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           PRESCRIPTION DRUGS

  Ms. STABENOW. Mr. President, I come to the floor to discuss a letter 
Senator Dayton and I are sending to the pharmaceutical companies of 
America--and invite colleagues to join with us in doing that--
expressing our concern about articles we read yesterday about a 
campaign that evidently is starting through an organization to spend 
money on advertising, promoting what is a woefully inadequate plan for 
seniors and families that appears to be proposed by our colleagues in 
the House of Representatives through the Republican side of the aisle 
that in fact would be available, would pay less than 20 percent of the 
cost for our seniors on Medicare for their prescription drugs, and 
would use reductions in hospital fees--another cut to hospitals--and 
certainly in Michigan, whether it is our rural hospitals or urban 
hospitals, we have seen enough cuts and closures of hospitals and 
facilities. We don't need any more cuts in our hospitals.
  But they are proposing to cut more reimbursements for hospitals and 
also to provide some kind of a per-visit fee for home health care. One 
of the things we heard was a $50 fee. We are getting this from the 
media, so it may not be the exact number. Regardless, the notion of 
adding some kind of a fee or copay for home health care and cutting 
hospitals further to pay for a woefully inadequate proposal that would 
pay for less than 20 percent of the costs that our seniors pay for 
their prescription drugs I find very disturbing.
  We are hearing that the drug companies now are contributing $3 
million for an unrestricted education grant to a group that is very 
closely aligned with them to run ads promoting this particular plan. 
The plan is good for the drug companies. It is not good for American 
seniors. It is not good for American families. It is not good for 
American business that is paying the tab for health care premium costs, 
whether it is a big business or a small business.

  When we look at the $3 million they are willing to invest, again in 
advertising, promoting a plan that is good for them, bad for the 
American people, Senator Dayton and I are sending a letter that 
basically will indicate we are asking them, instead of using the $3 
million they are giving to this group to run advertising, to use the $3 
million for lower prices, lower prices for our seniors.
  Just to read a portion of this:

     . . . we were greatly disturbed to read in yesterday's New 
     York Times that the pharmaceutical industry is funding a 
     group called United Seniors Association that will run 
     television ads supporting the House Republican prescription 
     drug plan . . . we have learned that the House bill is 
     totally inadequate. . . .
       The New York Times article states that drug companies will 
     devote as much as $3 million for this media campaign. We 
     respectfully urge you to redirect these funds and devote them 
     to lowering the price of prescription drugs to all Americans, 
     especially our nation's seniors. We think this would be a 
     much better use of your profits.

  This is a letter going to each of the companies urging them, rather 
than continuing to advertise excessively, 2\1/2\ times more in 
advertising than research on their products and continuing to fund 
groups that put forward plans that don't make any sense other than for 
the companies themselves--rather than spending all the money to do 
that, I invite the companies that do good work--we are proud of what 
they do and the lifesaving medicines they create--once they are 
created, we are asking them to work with us to make sure they are 
affordable to every American, that they are affordable to our seniors 
and our families; that a small business in America doesn't have to drop 
insurance coverage for employees because of rising, spiraling-out-of-
control prescription drug prices. This is another example of $3 million 
going to fund an effort to stop the right thing from being done in the 
United States--a woefully inadequate plan. Instead of making the plan 
better, instead of spending the money to help lower prices so that more 
seniors don't walk away from the pharmacy without being able to get 
that prescription after looking at the price--instead of doing that, 
they are spending another $3 million in advertising and promoting a 
plan that doesn't make sense for America.

  So I invite colleagues to join with Senator Mark Dayton and me today 
in sending this letter and asking the companies--thank them for their 
good work, but ask them to join with us in a meaningful proposal for a 
Medicare prescription drug benefit, and also to take the dollars they 
are spending now to fight the efforts to lower prices, and just lower 
prices. They would get a lot

[[Page S4193]]

further if they just put that money into lowering their prices so that 
it is more affordable for every American.
  I urge my colleagues and invite them to join with Senator Dayton and 
me to urge the companies to change their approach and work with us to 
lower prices for every American.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Nevada is recognized.

                          ____________________