[Congressional Record Volume 168, Number 26 (Wednesday, February 9, 2022)]
[Senate]
[Pages S604-S607]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
Unanimous Consent Request--S. 3615
Mr. SANDERS. Madam President, let us be as clear as we can be, and
that is, there is significant discontent throughout our country today,
from Vermont to California and in all 50 States. The American people
are worried about COVID. We are all worried about COVID. We are all
tired of COVID. But the American people are worried about much more.
They are worried about inflation, the price of food and gas, and other
products going up. They are worried about climate change and whether or
not the planet they will be leaving to their kids and grandchildren
will be healthy and habitable. They are worried about a middle class
whose real, inflation-accounted-for wages have not risen in almost 50
years, have been stagnant, and the reality that today, half of our
workforce is living paycheck to paycheck.
The American people are worried about the massive level of income and
wealth inequality which we are experiencing in which, during this
pandemic alone, just the last few years, the billionaire class saw an
increase in their wealth by some $2 trillion while at the same time,
thousands of workers died as they went to their jobs. They didn't have
a choice about it; they went to work, and they died.
The American people are worried that their kids are not getting the
quality childcare that they need or that the family can afford. They
are worried about the outrageous levels of student debt that their kids
acquired because they chose to get a higher education.
Above all else, the American people, in my view, are outraged that in
the midst of all of these crises and more, their elected officials are
simply not responding.
In my view, now is the time to tell the American people that we in
Congress do understand their pain, that we do know what they are going
through, and that we are prepared to stand up for the working families
of this country and take on the greed of powerful special interests who
wield so much influence over the economic and political life of our
Nation.
Today, Senator Klobuchar and I are going to focus on one--just one--
of the many issues that this Congress must address. The American people
want action, and that is what we have to give them. We have to respond
to the crises.
Today, we are going to be talking about prescription drugs. For
decades, literally decades--20, 30, 40 years--
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Members of both political parties have come to the floor of the Senate,
come to the floor of the House, and they have bemoaned the high cost of
prescription drugs in this country. They promised the American people
they would lower those outrageous prices. Republicans have come to the
floor, Democrats have come to the floor, and speech after speech has
been made. And not only speeches--Members of both political parties put
30-second ads on television when they ran for office: Hey, vote for me.
I am going to lower the cost of prescription drugs.
For decades now, Members of Congress have been talking about lowering
the cost of prescription drugs, and for decades, they have failed to
deliver. Talk, talk, talk--nothing happens. The cost of prescription
drugs goes up.
Congress has failed to deliver under Democratic leadership. It has
failed to deliver under Republican leadership. It failed to deliver
under Democratic Presidents and failed to deliver under Republican
Presidents. We have failed to deliver because of the greed of the
pharmaceutical industry, which today is likely the most powerful
corporate interest in America and is certainly the dominant political
force here in Washington, DC.
So I ask my fellow Americans today: Do you want to know why you are
paying the highest prices in the world for prescription drugs? Simple
question. Why is it that we are paying in some cases 10 times more for
the same exact prescription drugs that are sold in Canada or in Europe?
Do you want to know why one out of four Americans--this is really
quite crazy, that in the midst of a dysfunctional healthcare system, we
have one out of four Americans who cannot afford to fill the
prescriptions that their doctor writes. Think about that for one-half a
second. People are sick. They go to the doctor. The doctor writes out a
prescription. People can't afford to fill it. They end up in the
emergency room. They end up in the hospital. They get sicker because
they simply cannot afford the outrageous cost of medicine.
Do you know why millions of diabetic Americans actually ration their
insulin? I have talked to diabetics and parents of diabetics. Their
kids get sick because they cannot afford the cost of insulin.
Obviously, diabetes today is a terrible, terrible illness impacting
many millions of Americans.
Let me tell you why we pay the highest prices in the world, why
people in America die because they can't afford prescription drugs. The
answer has everything to do with the corrupt political system in which
over the past 20 years the pharmaceutical industry has spent over $4.5
billion--not million; $4.5 billion--on lobbying and hundreds of
millions of dollars on campaign contributions. Yes, you heard that
correctly--$4.5 billion over 20 years on lobbying and God knows how
many hundreds of millions of dollars on campaign contributions. These
are campaign contributions that go to Republicans. These are campaign
contributions that go to Democrats. And I am talking about many
hundreds of Members of the House and Senate who receive funding from
the pharmaceutical industry.
Further, the pharmaceutical industry has over the years mounted an
unprecedented lobbying effort in Washington, here in the Nation's
Capital, and in States all over the country. I hope everybody hears
this because this is what power is about. This is why you pay the
highest prices in the world for prescription drugs.
Last year alone, the pharmaceutical industry hired more than 1,700
well-paid lobbyists to come to Capitol Hill to protect their interests,
including the former congressional leaders of both major political
parties. Got that? Seventeen hundred well-paid lobbyists protecting the
interests of the pharmaceutical industry--get out your calculator
because what that amounts to is three pharmaceutical industry lobbyists
for every Member of Congress. There are 435 Members in the House and
100 in the Senate and 1,700 well-paid lobbyists making sure that you
pay the highest prices in the world for prescription drugs.
What is the result of all of that lobbying and all of those campaign
contributions? Well, I think the American people know it every time
they walk into a drugstore. The pharmaceutical industry, uniquely in
the entire world, is able to raise their prices anytime they want, to
any level they want.
How many people out there walked into a drugstore, refilled their
prescription, and the pharmacist said: Well, I am sorry to tell you the
cost of your medicine has gone up 20 percent.
Why? Because they can. They can do anything they want. If they want
to double prices, triple prices, there is no law stopping them. That is
what you get when you spend billions of dollars on lobbyists and
campaign contributions. You get what you pay for, and they have gotten
what they paid for.
Not only do we pay the highest prices in the world for prescription
drugs, but the result of that is that the pharmaceutical industry, year
after year, makes huge profits. Eight of the largest drug companies in
America in 2020 made nearly $50 billion in profits, while the CEOs of
those pharmaceutical companies took home over $350 million in total
compensation. Eight companies; $350 million in compensation for the
CEOs of those companies; $50 billion in profits in the last year we
have information.
Let's be very clear. The overriding motivation of the pharmaceutical
industry is greed. Their overriding goal is to make as much money as
they can by squeezing as much as they can get from the sick, from the
elderly, and from the desperate.
I could give you many, many examples of the outrageous greed of the
pharmaceutical industry, and I am not even going to talk about the
opiate crisis, which has killed hundreds of thousands of Americans. I
am not even going to go there today.
Let me just mention, a couple of years ago, the former CEO of a drug
company called Gilead became a billionaire by charging $1,000 for the
hepatitis drug Sovaldi. He became a billionaire. Interestingly enough,
that drug was developed by taxpayer dollars through the Veterans'
Administration. While they charge $1,000 a treatment here in the United
States, it turns out that it costs $1 to manufacture and can be
purchased in India for all of $4--$1,000 here; $4 there.
In 2016, the chairman of Mylan received a $164 million compensation
package after his company jacked up the price of EpiPen--you all
remember EpiPen--by 550 percent over a 9-year period.
All over this country, the American people are asking a simple
question: How many people in our country need to die? How many people
need to get unnecessarily sicker before Congress is prepared to take on
the greed and power of the pharmaceutical industry?
Enough is enough. A lifesaving prescription drug does not mean
anything if you cannot afford that drug. We have great drugs out there.
What does it mean if you can't afford that drug or if you are going to
go bankrupt because you have to buy it for a family member?
We cannot allow the pharmaceutical industry to charge the American
people, by far, the highest prices in the world for prescription drugs.
And that is why I have introduced today, along with Senator Klobuchar,
legislation that would cut the cost of prescription drugs under
Medicare in half--not by 10 percent, not 30 percent--cut the cost of
prescription drugs under Medicare in half. It would do that by making
sure that Medicare pays the same low prices for prescription drugs as
the Veterans' Administration does.
Why is it that the VA pays so much less for prescription drugs than
Medicare? The answer is pretty simple. While the VA has been able to
negotiate with the pharmaceutical industry for the past 30 years,
Congress banned Medicare by law from doing anything to lower
prescription drug prices. And the result is that, according to the
nonpartisan Government Accountability Office, Medicare pays twice as
much for the exact same prescription drugs as the VA.
All right. You talk about dysfunctionality. You talk about crazy. You
have two branches of government. VA pays X, Medicare pays 2X. How in
God's name does that make sense to anybody other than the
pharmaceutical industry? This is totally absurd. And if the VA can
negotiate with the drug companies, so can Medicare.
By the way, for all of the great deficit hawks here staying up nights
worrying about the deficit, let me tell you,
[[Page S606]]
if we do that, we will save Medicare some $900 billion over the next
decade. I would like to see where the deficit hawks are on this issue--
$900 billion, 10 years. That is real money.
The VA, obviously, is not the only Agency that negotiates for lower
drug prices. That is something that takes place in every other major
country on Earth. There is no rational reason for the pharmaceutical
industry to charge the American people $98.70 for a standard unit of
insulin that can be purchased in the UK for just $7.52, and on and on
it goes.
The American people are being played for suckers. They have bought
the U.S. Congress, and it is time now for Congress to stand up to these
people.
With that, I would mention that what we are talking about--what
Senator Klobuchar and I are talking about is not some radical far-left
idea. I get that. I don't know if Senator Klobuchar gets that, but it
is not some radical, far-left idea; it is a fairly popular idea.
According to an October 2021 poll by the Kaiser Family Foundation, 83
percent of the American people want Medicare to negotiate with the
pharmaceutical industry to lower the cost of prescription drugs, and
poll after poll shows the same thing. Maybe, just maybe--ready for a
radical idea, Madam President? Maybe, just maybe, instead of doing the
work of the lobbyists and the pharmaceutical industry, we might just
want to represent the American people.
I yield the floor.
Ms. KLOBUCHAR. Madam President, I think you know Senator Sanders and
I debated a number of issues before, but from the beginning, we have
been strongly united on one thing, and that is bringing down costs for
the American people. And that is, as he just said, not one bit radical.
We have joined together to introduce the Cutting Medicare
Prescription Drug Prices in Half Act because that is what we should be
doing. America pays more. The people of this country pay more for their
prescription drugs than any other country in the world. How can that
be, as Senator Sanders has noted, when it is our country, our taxpayers
who are investing in all this research? How can we come up short when
it comes to what our people are paying for drugs?
The examples: In the past 5 years, the cost of Lyrica--a drug that
you see advertised on TV, millions of dollars in ads--a drug that
treats nerve pain or Symbicort, an asthma medication, increased almost
50 percent. What is the result of these kinds of increases? Nearly 20
percent of older adults have reported not taking their medicines as
prescribed because of the cost.
Last month alone, drug companies hiked the price of 742 drugs in
America. What do we do? We sit. We sit; we talk about it; and we are
not taking action.
That is why Senator Sanders and I are putting our bill in today. We
would love to spend the week debating it. We would like to move to this
bill so we can get this done. We know that prescription drug prices in
the United States are more than 250-percent higher than other
industrialized nations.
What is our simple solution? The VA, the U.S. Department of Veterans
Affairs, that we empower with the lives of our veterans and their
healthcare--they negotiate the prices of the drugs they purchase and
dispense for our Nation's veterans. One report found that the VA price
is often half as much as what Medicare pays. Why? It is simple. The VA
negotiates for prices; Medicare doesn't.
I kind of think--and Senator Sanders and I know this well--that 46
million seniors in America could get a pretty good deal if you allow
the government to negotiate on their behalf, a good deal for the
taxpayers of this country, for people who care about deficits, for
people who care about the bottom-line budget, and a good deal for
customers.
Guess what. It wouldn't just help seniors because that is such a
large block of customers in this country that it would bring down the
drug costs for everyone.
The stories in my State--people like Claire from St. Paul. When the
cost of the prescription drug she relied on to manage her rheumatoid
arthritis jumped from $60 a month to $1,400 per month, she could no
longer afford it. In her words, her arthritis became so bad that she
could barely handle a fork and a knife or the young man who is the
manager of a restaurant, a full-time job. When he aged off his parents'
insurance, what happened to him? You know this story, Madam President.
He started to ration his insulin. He had severe diabetes, and he died.
His mother has made her life about getting better drug prices.
Senator Sanders and I believe you start with the biggest buying
block. You start with seniors. You get that negotiation going, and it
will make a big difference.
For people who believe in free markets and negotiation and
competition, I don't know how you can say no to this proposal. It is
time to allow this to be debated to move forward with this bill. Let's
get it on the floor and call it up for a vote.
Thank you, Senator Sanders.
Mr. SANDERS. Senator Klobuchar said it all. I know we are spending
the week dealing with Assistant Secretaries or something or another--
and that is all terribly important--but the American people want us to
start acting on their needs.
At the top of the list, as Senator Klobuchar just said--and what she
said about folks in Minnesota is exactly the same everywhere. You hear
the same stories in Vermont. People die and get sick because they can't
afford prescription drugs.
I say to my Republican friend, the time is now to have that debate.
You want to vote against this bill? Hey, that is your right. You go
home and explain it to the people. That is what democracy is. Some of
us still believe in democracy, by the way.
Madam President, as if in legislative session, I ask unanimous
consent that at a time to be determined today by the majority leader,
following consultation of the Republican leader, the Senate proceed to
the consideration of S. 3615, which was introduced earlier today; that
there be 2 hours for debate, equally divided; that upon the use or
yielding back of time, the bill be read a third time and the Senate
vote on passage of the bill without intervening action or debate.
The PRESIDING OFFICER. Is there objection?
Mr. CRAPO. Madam President, reserving the right to object.
The PRESIDING OFFICER. The Senator from Idaho.
Mr. CRAPO. Madam President, our Nation's seniors deserve meaningful
solutions that increase prescription drug access and affordability.
This bill, unfortunately, would double down on the deepest flaws in
our current healthcare system and usher in a host of new problems from
fewer treatments to more bureaucracy. And, yes, it is almost certain
under this legislation we would see launch prices for new drugs
actually increase. The solution is not to go and double down on a
failed socialist theory of price-fixing and work to make our market
better.
Even setting aside the overwhelming implementation challenges and
technical issues that this legislation would present from the outset,
the provisions included would do far more harm than good, particularly
for the very older Americans they are intended to help.
I would note from the outset there is talk about wanting to have
process and a vote. This legislation was just introduced today. It just
got a bill number today. There has been no vetting of this legislation
in the committee, which is the regular order of this Senate. There has
been no public analysis. There has been no public review. There has not
been any hearing on this legislation. There has been not any
negotiation on this legislation.
I heard numbers thrown out here about what a savings this would be.
CBO has not scored this legislation, and there are serious flaws with
it.
Under this proposal, we would see a staggering decline in the game-
changing research and development that our universities, medical
centers, and entrepreneurs conduct every day, as vital investments in
the cures of the future would decline.
As countless studies of price control mandates like the one before us
today have concluded, these policies would slash new drug discoveries
in the years to come, jeopardizing some of the highest risk projects,
in particular.
Potential treatments targeted at conditions affecting seniors at high
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rates, like certain cancers, would likely suffer the greatest impact,
as Medicare would become increasingly stagnant and unable to meet the
evolving needs of rapidly aging populations.
After coming in under budget with satisfaction rates soaring and
premiums remaining remarkably stable, Medicare Part D would lose the
market-driven structure that has made it such a success story for so
many seniors. Instead, we would move closer to a government-run
healthcare system--which is the ideal and the goal--where bureaucratic
price controls like these would become the norm.
The vast majority of Americans, in my opinion, still reject the
notion of a government-run healthcare system and price controls in
place of a free market.
Meanwhile, our frontline healthcare providers have weathered a truly
unprecedented 2 years of pandemic, and they would face a sweeping,
immediate, and drastic payment cut as this legislation aims to advance
immediate payment reductions under Medicare Part B with direct
implications for doctors and other healthcare professionals across all
settings.
In the face of widespread provider burnout, retirements, closures,
and consolidation, these cuts risk accelerating trends that already
jeopardize access to healthcare for far too many Americans from all
walks of life, particularly in rural and underserved communities.
The VA, which has been referenced here, for its part, would
inevitably see higher healthcare costs as any discounts or other price
concessions that lower drug costs for our Nation's veterans would
disappear.
Previous payment systems along these lines that have been suggested
in the past have resulted in a host of unintended consequences, from
higher launch prices to withheld rebates and discounts.
Our veterans do not stand to gain from being tied to this unvetted
and failed new proposal.
As we confront unprecedented challenges at home and abroad, we must
look to consensus-driven solutions that meet Americans' everyday needs,
including prescription drug access and affordability. We can agree on
that.
Members across the political spectrum have developed bipartisan drug
pricing policies that could make a meaningful difference for workers
and families. I have introduced legislation which is waiting in the
committee for a vetting rather than coming to the floor here to try to
get it brought to the floor without even going through Senate regular
order.
My legislation is called the Lower Cost, More Cures Act. Here is just
a quick summary of what it contains: a hard cap on annual out-of-pocket
spending for all seniors under Medicare Part B, with an installment-
based monthly payment option; reforming of Medicare Part B benefits to
reduce seniors' cost-sharing burdens and incentivize plans to negotiate
the best possible deal for enrollees; increasing Part D plan choices;
increasing options; and reducing prices.
My bill does have an out-of-pocket monthly insulin cap at $35. That,
you might remember, is the insulin cap that President Trump put into
place. That is the kind of approach we need to follow.
It also includes establishing a chief pharmaceutical negotiator to
combat foreign freeloading and ensuring the best trade deals that
achieve American success in dealing with these price discrepancies that
are driven by terrible behavior from our counterparts in other parts of
the global economy; strengthening our consumer-oriented oversight
through our cost-comparison tools and price transparency measures and
robust reporting requirements in the drug supply chain; facilitating
value-based arrangements where private and public sector payers can pay
based on patient outcomes, driving better results for patients; and
restructuring payments for drugs administered in the doctor's office or
hospital outpatient department to encourage physicians to deliver cost-
effective treatment options where appropriate clinically.
My point is, there are a lot of solutions that can work within the
consistent free market and private sector solutions that we have solved
here and are working on to make them better.
We have an opportunity to lower prescription drug costs without
threatening access to therapies or cures or the future handling of
giving an advantage, frankly, to our global rivals like the Chinese.
With a bipartisan and bicameral effort undertaken through regular
order, we could make a major impact on these issues. This legislation,
unfortunately, does no such thing. It is thoroughly unvetted, showing
no signs of technical assistance or practical feasibility. It has not,
as I said, received a CBO score or even an informal analysis or a
committee hearing. It did not advance through regular process in the
Senate.
I see that our time is running out, and so I will end my comments at
this point but just ask my colleagues to let us engage in regular order
in the Finance Committee in the Senate and work these issues through.
There are a lot of ideas on the table. Let's work them through rather
than try to cram through one side's idea on the very day the bill was
introduced in the Senate. I object.
The PRESIDING OFFICER (Mr. Ossoff). The objection is heard.
The Senator from Vermont.
Mr. SANDERS. I say to my friend from Idaho, we have been going
through regular order dealing with prescription drugs for 40 years. It
hasn't quite worked.
Your bill has gone nowhere. My bill has gone nowhere. If you have got
objections to what Senator Klobuchar and I are doing, let's debate them
on the floor of the Senate.
We have heard all the talking points from you that the pharmaceutical
industry wrote--I got that. They spend a lot of money writing these
talking points. Let's have that debate right here. The bill that
Senator Klobuchar and I are proposing is supported by over 80 percent
of the American people and, I dare say, a vast majority of the people
of Idaho. You want to oppose it. Go for it.
Let's have the damn debate right here on the floor, and if it takes 1
week, great. If it takes 2 weeks, great. You will agree with me that
this is an issue that the American people care about so I would hope
that you would reconsider. Let's bring it to the floor. Offer your
amendments. Let's have the debate.