House Members Support Effort And Vote 374 to 30 to Instruct Defense Conferees to Include Drug Discount Provisions in Final Bill

WASHINGTON – Supporting efforts by Rep. Benjamin L. Cardin to lower drug costs for members of the military and their families, the House today voted overwhelmingly to instruct House and Senate conferees working on the FY 2007 National Defense Bill to adopt a Senate provision requiring pharmaceutical companies to give TRICARE beneficiaries discounts on retail prescription drugs.  

“We need to provide military personnel and their families with access to affordable prescription drugs at the retail level.  This provision will generate tremendous savings and ensure that the Department of Defense (DOD) does not have to raise co-payments for active duty and retired military personal,” said Rep. Cardin.

Last week, Reps. Cardin, Marion Berry (D-AR) and 40 other House members sent a letter to the conferees urging adoption of the Senate provision allowing discounts on TRICARE retail drugs.  The Veterans Health Care Act of 1992 directs drug companies to grant discounts to all drugs supplied to the DOD, the Department of Veterans Affairs, the Public Health Service and the Coast Guard.  On average, the discounts lower government costs by 30% to 40%.

The DOD has tried to enforce this provision with respect to the TRICARE retail pharmacy program, but pharmaceutical companies have refused to grant the discount for the retail program as they do for drugs dispensed through the mail order program or military hospitals. 

The Senate version of the National Defense Authorization bill would clarify the 1992 provision, forcing pharmaceutical companies to extend discounts to the TRICARE retail program. This would lower costs and eliminate the need for a provision in the House bill to increase retail co-payments for TRICARE beneficiaries. Without adoption of the Senate provision, TRICARE beneficiaries will see their co-payment for generic drugs increase from $3 to $6 a month and the price of brand names drugs increase from $9 to $16 a month.

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NOTE: A PDF of the letter sent to the House-Senate conferees is attached.