[Congressional Record Volume 148, Number 123 (Wednesday, September 25, 2002)]
[Senate]
[Pages S9182-S9183]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              THE ECONOMY

  Ms. STABENOW. Mr. President, I thank my friend for his courtesy this 
morning, and I appreciate the opportunity to speak for a few moments 
before assuming the Chair. I did want to follow up on the discussion 
this morning on the economy. A few minutes ago, I indicated that every 
economic indicator that should be going down is going up: job losses; 
health care costs; foreclosures; national debt; interest rate costs; 
Social Security trust fund raid. Every part of the economy we wish to 
be going up is going down: economic growth, down; business investment, 
down; the stock market, down; retirement accounts, down; consumer 
confidence; minimum wage.
  We have a very disturbing situation. I wish to speak for a moment 
about one piece of the economy that is so critical in the quality of 
life of American families and American businesses which are struggling 
to pay the costs. Let me speak to one piece of the economic record of 
the last 18 months, and that is that workers' payments for health 
insurance is soaring.
  We are seeing that the cost of insurance to cover a family has gone 
up 16 percent, and the cost of an individual has gone up 27 percent, 
over one-fourth increase in their costs. The costs are going up. Their 
savings are down, their investments are down, and at the same time, we 
are seeing the biggest part of the reason for that health care cost 
going up as a result of the cost of prescription drugs.
  We are seeing overall prescription drugs going up over three times 
the rate of inflation. This is a critical part of the economic pie, the 
costs for consumers right now. It is not inconsequential. It is not 
like buying a new pair of tennis shoes or ``Gee, I would like to have a 
new coat.'' This is lifesaving medicine, the difference between life 
and death, or whether a person goes into a nursing home or is able to 
live at home. I am very concerned about this. What is the response?
  We in the Senate have been focused on Medicare prescription drug 
coverage and lowering prices for everyone. We have been successful in 
passing a bill that, in fact, lowers prices and creates more 
competition in the marketplace once a patent expires. But what is the 
response of the pharmaceutical industry within this context, with the 
struggles that are going on for families, businesses, and farmers 
across the country? What is their response right now? A new PR 
campaign, not putting the millions of dollars into lower prices and 
making prescription medications available, lowering the premiums for 
small businesses. They have gone on a huge PR campaign.
  We are seeing ads that I find, I have to say, absolutely outrageous. 
One says: ``Pray for a Miracle.'' It uses the picture of a child who, 
obviously, is deathly ill. It says: ``Pray for a Miracle,'' because 
they say generic drugs will never cure him.

[[Page S9183]]

  In the small print it says: ``They don't do research.'' Of course 
they do not do research. They do not do research. They do not have to 
do research. The idea of generic drugs is to take the formulas and the 
patents after the research has been done, after the American people 
have helped to pay for that research through NIH funding, tax 
deductions, and supporting the companies with a 20-year patent so they 
do not have competition in recovering their costs.
  The whole point of generics is the American public made a deal that, 
once the 20 years is up, once those subsidies are up, they will have 
that formula available so generic companies can manufacture those drugs 
and lower the prices.
  Instead of working with us to have a system that works both for brand 
name companies to develop these new brand name drugs and also for the 
American people to get the bargain they are supposed to get, which is 
lower prices, the companies are putting millions of dollars into a 
front senior citizen group, ads on the air, getting involved in 
elections and running ads scaring people that somehow if we let the 
system work as we created it over the years in a bipartisan way, if we 
let the system work, this child, who is obviously seriously ill, will 
somehow be hurt. I find that absolutely outrageous.
  I am concerned in the context of this economy and the debate and the 
American people trying to figure out when they sit down in the morning 
what they are going to pay for--are they going to be able to afford the 
health care premium? Is that senior going to be able to afford their 
medicine? Are they going to be able to pay for the clothes kids need 
for school? Are they going to be able to do the other things they need 
for their family?
  Instead of working with us, the companies have chosen an outrageous 
PR propaganda campaign. I urge them to work with us to do the right 
thing. I thank the Chair.
  The PRESIDING OFFICER (Mr. Edwards). The time of the Senator has 
expired.
  The Senator from Missouri is recognized.

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