Tuesday, September 19, 2006

New Report: Drug Company Profits Skyrocketing Under Medicare Drug Plan

The Government Reform Committee released a new report today showing that profits for the pharmaceutical industry increased by more than $8 billion during the first 6 months of the Bush Administration's Medicare Prescription Drug plan.

The report attributes this rise in profits to three factors: the failure of private plans to negotiate low prices, the elimination of billions in rebates paid by pharmaceutical companies for drugs used by low income beneficiaries, and increased sales by drug manufacturers due to the Medicare subsidy.

This is yet another sign that Republicans have put the interests of pharmaceutical companies before the interests of our seniors. This Republican plan forces taxpayers to throw money at the pharmaceutical industry while seniors get stuck with high drug prices. Even worse, many of our seniors are now falling into the doughnut hole where they have to pay up to $3,000 of their prescription medications out of pocket.

Our seniors deserve better. They deserve a Medicare-run plan with price negotiation. This will drive down the price of prescription drugs by as much as 40% and give seniors an option they trust.

Click here to learn more about my bill to create a Medicare-run prescription drug benefit.