The Minnesota Senior Federation has made the control of prescription drug costs one our highest priorities since our inception over thirty years ago.  We have worked locally, statewide and nationally during that time.

While the Federation strongly supports a good prescription drug benefit under Medicare, it is our belief that the new Medicare prescription drug benefit is confusing, costly, and fiscally irresponsible.

We agree with the assessment of former U.S. Senator David Durenberger (R-MN) who wrote that “at best the Medicare Modernization Act is a mixed bag…The bottom line is there is an ever-widening gap between providers and beneficiaries.  Healthcare providers, insurance industries, and some employers gain or save money, while consumers lose in both coverage and cost.”

A lost opportunity
In 2003 Congress and the president had an opportunity to bring prescription drug prices under control through the Medicare Modernization Act by having g the Federal Government negotiate rates with international pharmaceutical companies. In so doing the U.S. would have joined the rest of the industrialized world in providing for a decent rate of return for pharmaceutical research and at the same time recognize that government needs to put the needs of its citizens ahead of the greed of the pharmaceutical industry.  Instead under the influence of over 600 pharmaceutical lobbyists, major finical contributions to our elected official, Congress opted to let the negotiation up to the private sector through. Medicare (CMS) indicates that the average discounted rate under the new Medicare benefit will be about 15% instead of the 45% discount that the government has negotiated for Veterans and Congress.

  ¹ Boston University School of Public Health study based on a formulary of 1,000 brand name drugs released in October of 2004. The same study reveals that in 2000 Americans paid 60% more on average than other industrialized countries.