[Congressional Record Volume 150, Number 102 (Wednesday, July 21, 2004)]
[Senate]
[Page S8561]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE:
  S. 2714. A bill to amend part D of title XVIII of the Social Security 
Act, as added by the Medicare Prescription Drug, Improvement, and 
Modernization Act of 2003, to provide for negotiation of fair prices 
for Medicare prescription drugs; read the first time.
  Mr. DASCHLE. Recently, the Majority Leader pulled the class-action 
reform legislation from consideration after the Senate failed to invoke 
cloture on the bill. We all know he would have had the votes for 
cloture if he had not played games with the amendment process. Instead, 
he proposed allowing Democrats only five non-germane amendments and 
insisted that he choose which amendments could be offered. He insisted 
that under no circumstances could we offer a bipartisan bill to 
legalize the safe importation of lower-priced prescription drugs from 
Canada and other industrialized countries. The Majority Leader no doubt 
feared that the re-importation legislation would pass as a result of 
the broad bipartisan support it enjoys. But the drug industry didn't 
want lower prices, and we were prevented from offering our amendment.
  The re-importation bill is just one of many health measures currently 
pending in Congress that would help Americans who are struggling with 
the high costs of care, drugs, and insurance. These bills have broad 
support--some even have Republican lead sponsors--and we should be 
considering them here in the Senate. In fact, it is our obligation to 
do so. Yet most of these bills continue to languish in committee while 
the majority plays procedural games with the amendment process and 
spends countless hours on bills and measures that the Majority Leader 
knows do not have the votes to pass.
  In response, over the past week, we have begun the process of putting 
these measures on the calendar. We are doing so to highlight that these 
critical bills are available for consideration on the Senate floor, and 
to show how important it is to pass them and send them to the President 
for his signature as soon as possible.
  Today, I would like to discuss a measure I first introduced on the 
day the conference report to the Medicare bill passed the Senate. This 
proposal was included in a broader piece of legislation that we 
introduced that day in response to the conference report, and, on 
December 9, I introduced it as a stand-alone measure. It is a very 
simple bill. It would strike the prohibition contained in last year's 
Medicare legislation that prohibits the government from using the power 
of 41 million beneficiaries to negotiate lower drug prices for seniors. 
Senators on both sides of the aisle have expressed support for striking 
that provision. Senators who supported the conference report have 
joined with those who opposed it, such as myself, in cosponsoring my 
bill. That's because it just makes sense.
  The new Medicare law does almost nothing to rein in skyrocketing 
prescription drug costs. In fact, it actually prohibits Medicare from 
using its bargaining power to negotiate lower prices. We have seen the 
VA's success at negotiating lower prices. Similarly, we should use the 
power of Medicare's beneficiary population to obtain lower prices for 
seniors and people with disabilities. Rather than fragmenting the 
population to dilute our ability to negotiate lower costs, we have an 
obligation--both to Medicare beneficiaries and to American taxpayers--
to secure the lowest possible prices. That's what my bill would do.
  It's time for the Senate to side with seniors and taxpayers over the 
drug industry. It's time for the Senate to pass this bill.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2714

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Medicare Prescription Drug 
     Price Reduction Act of 2004''.

     SEC. 2. NEGOTIATING FAIR PRICES FOR MEDICARE PRESCRIPTION 
                   DRUGS.

       Section 1860D-11 of the Social Security Act (42 U.S.C. 
     1395w-111) is amended by striking subsection (i) (relating to 
     noninterference) and by inserting the following:
       ``(i) Authority To Negotiate Prices With Manufacturers.--In 
     order to ensure that each part D eligible individual who is 
     enrolled under a prescription drug plan or an MA-PD plan pays 
     the lowest possible price for covered part D drugs, the 
     Secretary shall have authority similar to that of other 
     Federal entities that purchase prescription drugs in bulk to 
     negotiate contracts with manufacturers of covered part D 
     drugs, consistent with the requirements of this part and in 
     furtherance of the goals of providing quality care and 
     containing costs under this part.''.
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