Rick Allen: “Basically, it works the way other companies hold down the cost to their citizens. It is really simple. It would allow…”

“Basically, it works the way other companies hold down the cost to their citizens. It is really simple. It would allow pharmacies to buy drugs for Medicare beneficiaries at what is called the average foreign price. That is defined in the bill to be the price at which that drug can be purchased in Britain, in France, Germany, Italy, Canada and Japan, the rest of the G-7 countries, industrialized countries. It would obviously hold down costs, because in those countries the average foreign price for any particular drug is typically about $60, $63 or $64 compared to $100 a month here. So it is about a 35 to 40 percent reduction that we would be talking about.”