Bill will lower drug prices for seniors and save taxpayers money

Washington, DC- Today Congresswoman Kirsten Gillibrand voted for the bi-partisan Medicare Prescription Drug Negotiation Act of 2007, H.R. 4. This bill, which Congresswoman Gillibrand co-sponsored, passed by a vote of 255 to 170. This piece of legislation is expected to help Medicare drug beneficiaries obtain lower prices for prescription drugs by allowing the government to negotiate for lower drug prices. Currently the government is prohibited from negotiating lower prices for Medicare.

Congresswoman Kirsten Gillibrand applauded the vote, saying, “Banning the government from negotiating drug prices is preventing us from bargaining savings for our seniors. Negotiations will lower drug costs, which will allow seniors and hardworking taxpayers to save more money.”

According to a House Government Reform study, drug prices under the Medicare prescription drug plan are, on average, 84% higher than when they are directly negotiated by the federal government for the Veteran’s Administration and 61% higher than Canadian drug prices.

There are 89,913 people aged 65 and older in Representative Gillibrand’s district and 107,529 Medicare Beneficiaries.

A recent poll showed that 92% of Americans support allowing the Secretary of HHS to negotiate for lower prescription drug prices on behalf of Medicare. The bill also has the support of a number of organizations including AARP, National Committee to Preserve Social Security and Medicare, American Nurses Association, Alliance for Retired Americans, SEIU and AFL-CIO.

*House Committee on Government Reform- minority staff, 11/200

# # #