[Congressional Record Volume 153, Number 8 (Tuesday, January 16, 2007)]
[Extensions of Remarks]
[Page E115]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            PRESCRIPTION DRUG PRICE NEGOTIATION ACT OF 2007

                                 ______
                                 

                               speech of

                         HON. ROBERT E. ANDREWS

                             of new jersey

                    in the house of representatives

                       Tuesday, January 16, 2007

  Mr. ANDREWS. Mr. Speaker, as the Representative of the First 
Congressional District of New Jersey, I take this opportunity to enter 
into the Record my position on the Medicare Prescription Drug Price 
Negotiation Act of 2007, H.R. 4. First, I would like to congratulate 
Speaker Pelosi on her outstanding performance over these last few weeks 
in bringing the real priorities of the American people to the forefront 
of the 110th Congress's agenda. Reforming the House of Representatives 
ethics standards, increasing the minimum wage, authorizing Federal 
research of embryonic stem cells and providing the Secretary of Health 
and Human Services, HHS, the authority to negotiate drug prices with 
the pharmaceutical industry are all essential measures for the American 
people.
  On January 12, 2007, I voted in favor of H.R. 4; however, I have some 
concerns for seniors in my home State of New Jersey. Although I believe 
Congress should authorize the Secretary of HHS to negotiate drug 
prices, I believe his authority should be limited so to not disrupt 
areas in which the Pharmacy Benefit Managers, PBM, are obtaining the 
best deal for seniors. If our goal is to ensure that all avenues of 
achieving price discounts are being used to benefit the seniors and 
individuals with disabilities in the Medicare program, then Congress 
should allow drug companies and PBMs, who are successfully negotiating 
affordable drug prices for seniors, to continue to do so without 
interference from HHS and focus the Secretary's attention on those 
areas where competition is stymied and prices are artificially inflated 
by drug companies.
  Furthermore, I am concerned about how H.R. 4 will affect various 
States' prescription drug assistance programs. For example, New Jersey 
provides drug coverage to over 200,000 low-income seniors through two 
programs known as the Pharmaceutical Assistance to the Aged and 
Disabled program or PAAD and Senior Gold. After passage of the Medicare 
Prescription Drug bill, the State of New Jersey made a decision to make 
beneficiaries whole by providing a ``wrap around'' benefit to Medicare 
Part D. Therefore, PAAD beneficiaries continue to pay only a $5 co-pay 
per prescription with no deductible, regardless of the terms of their 
particular Part D plan. Secondly, because PAAD maintains an open 
formulary for its beneficiaries, medications not covered under Part D, 
are covered by PAAD. It has been argued that if the language of H.R. 4 
places a restriction on medications Part D will cover, the cost of the 
PAAD and the Senior Gold program will increase as the burden to provide 
even more medications not covered by Medicare falls onto the State. As 
we move toward conference of the two Chambers, I want to make sure H.R. 
4 does not lead to restrictions on access to new medications and gives 
seniors the best possible price for their medications.
  Again, I commend Speaker Pelosi for a job well done and for making 
affordable prescription drugs for seniors a top priority in the 110th 
Congress.

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