Ron Wyden: “Senator Snowe and I said we would work to improve the Medicare Part D benefit ever since we voted for its passage.…”

“Senator Snowe and I said we would work to improve the Medicare Part D benefit ever since we voted for its passage. Senator Snowe and I think one of the most egregious errors in the Medicare drug benefit was to write into law that the Secretary cannot have bargaining power under any circumstances. That is why today we are introducing the Medicare Enhancements for Needed Drugs Act of 2007. This legislation lifts the prohibition on bargaining power and requires the Secretary to negotiate on behalf of seniors. We believed that one of the most important things missing from the Part D benefit was cost containment--and allowing Medicare to negotiate for drug prices would be an important cost containment measure. Our legislation clearly prohibits price setting or the creation of a uniform formulary. What our legislation allows Medicare to do is to be a smart shopper--just as any consumer would be--by allowing Medicare to go in the market and use its clout just like any other big purchaser. Under our proposal, the Secretary could negotiate in any circumstance, but must negotiate in several instances: for single source drugs for which there is no therapeutic equivalent; drugs for which taxpayer funding was substantial in its research and development; and for any fallback plan the Secretary must provide.”