Judd Gregg: “If you look at this proposal which has come forward, offered by the Senator from Michigan, essentially its outcome will…”

“If you look at this proposal which has come forward, offered by the Senator from Michigan, essentially its outcome will be that the discounts allowed under Medicaid, which States get for their Medicaid recipients, which are significant discounts--nobody should underestimate, these are big discounts which drug companies that make your product are required to give to the States through the Medicaid process--those discounts under the proposal of the Senator from Michigan, those discounts will now be transferable to a whole new population of people, a very large, potentially very large population of people. As the Senator from Oklahoma pointed out rather correctly, that population is not necessarily going to be means tested, not necessarily going to be of need. It could simply be a population which qualifies for this new discount under a State plan. As a result, what you are going to do is end up for those drugs significantly reducing the revenues which flow to whoever produced that drug.”