[Congressional Record Volume 156, Number 80 (Tuesday, May 25, 2010)]
[Senate]
[Pages S4218-S4219]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. FEINGOLD:
  S. 3415. A bill to amend the Federal Food, Drug, and Cosmetic Act 
with respect to the importation of prescription drugs and to amend part 
D of title XVIII of the Social Security Act to require the Secretary of 
Health and Human Services to negotiate covered part D drug prices on 
behalf of Medicare beneficiaries; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. FEINGOLD. Mr. President, today I am introducing the Fair Pricing 
for Prescription Drugs Act to help make prescription drugs more 
affordable for all Americans. This legislation endorses the excellent 
work that my colleague Senator Dorgan of North Dakota has done to 
promote importing prescription drugs from other industrialized 
countries. And it includes companion language to Congressman Welch's 
bill to call on the Secretary of Health and Human Services to negotiate 
drug prices on behalf of Medicare Part D beneficiaries. Here in the 
Senate, several of my colleagues, most recently Senator Bill Nelson of 
Florida, have tirelessly pushed the need for negotiation of drug 
prices. I am proud to have stood with my colleagues on these issues 
over the last decade--and feel strongly that Congress must move quickly 
to ensure that all Americans--whether they purchase private health 
insurance or are enrolled in Medicare--have fairly priced prescription 
drugs.
  Allowing for importation of prescription drugs and price negotiation 
for Medicare Part D are common sense policies, These are changes that 
Congress can make to drastically improve the affordability of 
prescription drugs for our constituents, save the government money, and 
further enhance the health reform law passed earlier this year. I was 
pleased to be a part of that historic effort, but the health reform law 
was not perfect and did not go as far as it could have to reduce 
prescription drug prices for consumers. I have heard from thousands of 
Wisconsinites about the need for health reform during my time in the 
Senate. The health reform law empowers consumers and small businesses 
for the first time in our history to demand more for their health care 
dollar. These changes will

[[Page S4219]]

improve the affordability of health insurance and medical care for 
individuals and families. But I also continue to hear from 
Wisconsinites about the burden of rising prescription drug costs. They 
need our help.
  One of the fastest ways to reduce prescription drug costs is to allow 
for importation of FDA-approved prescription drugs from other 
industrialized nations like Canada, Japan, Australia, New Zealand, and 
European countries. Americans pay some of the highest prices for the 
same prescription drugs that are sold 33 to 55 percent less in other 
countries. Americans are now importing more than $1 billion in 
prescription drugs from Canada alone. In these tough economic times, 
and with equally safe but more affordable drugs just over the border, 
it is no wonder that Americans are going to such lengths to buy the 
prescriptions they need.
  The Congressional Budget Office estimated in 2007 that allowing 
importation of prescription drugs would save consumers upwards of $50 
billion. Just last year, the CBO reviewed their original estimate of 
government savings as a result of this policy, concluding that the 
government would nearly double its expected savings to over $19 
billion.
  We do a lot of things in Congress that leave our constituents 
scratching their heads. Well, now we have a chance to show them we are 
listening to them, that we understand their concerns, and that we want 
to bring down Federal spending while ensuring the prescriptions drugs 
they need are more affordable.
  We can also do more to ensure affordable prescription drugs for 
Medicare beneficiaries by calling on the Secretary of Health and Human 
Services to negotiate drug prices for Medicare Part D enrollees. Mr. 
President, I opposed the legislation that created the Medicare Part D 
drug benefit because I did not believe the program would provide 
adequate financial relief for Medicare beneficiaries facing high 
prescription drug costs. This legislation actually included a provision 
which explicitly forbade the Secretary from negotiating with drug 
manufacturers on behalf of seniors' interests. We should have done 
better for our seniors. And they are living with the consequence of 
that decision today--with ever-rising prescription drug costs.
  The health reform law will provide some relief, particularly for the 
dreaded ``donut hole'' of Medicare Part D. But health reform does not 
speak to the other glaring shortfall of the Medicare Part D program--
that the government is prohibited from negotiating for better drug 
prices for beneficiaries.
  Negotiating on behalf of beneficiaries is hardly a radical idea, Mr. 
President. The Department of Veterans Affairs, VA, negotiates on drug 
prices and spends considerably less than the Medicare program on the 
same drugs. The National Committee to Preserve Social Security and 
Medicare released a study that found that VA drug prices are, on 
average, 48 percent lower than Medicare Part D prices for the top 10 
prescribed drugs. NCPSSM estimates that billions could be saved 
annually by requiring the Secretary to negotiate drug prices for 
Medicare Part D. With the government on the hook for over $50 billion 
in drug costs for Part D alone, it is simply irresponsible to not 
aggressively seek new savings from negotiating prices. Focusing on 
lowering the price of prescription drugs rather than subsidizing 
insurance and pharmaceutical companies will not only provide relief for 
the sick, but will save taxpayer dollars.
  Changing how we purchase prescription drugs by allowing importation 
from industrialized countries and negotiation on pricing for Medicare 
Part D is a clear and simple way to reduce prescription drug costs, 
reduce government spending, and keep Americans healthier. I am thankful 
for the leadership that my colleagues have shown in introducing 
legislation on these topics, and add my voice, and my bill, to theirs 
in our combined effort to answer the demands of our constituents.
                                 ______