VTDigger: Welch Seeks Drug Negotiating Power for Medicare
Vermont’s congressman is encouraging President-elect Donald Trump to follow through on a position Trump announced a year ago advocating for the federal government to negotiate prescription drug prices.
Rep. Peter Welch, D-Vt., has introduced a bill that would allow the federal Medicare program, which covers senior citizens and people with disabilities, to negotiate prices with pharmaceutical companies.
“The cost of prescription drugs is hammering consumers, employers providing health insurance to their workers, and taxpayers,” Welch said in an interview. “And the Medicare program is the biggest buyer of prescription drugs and it’s prohibited from negotiating bulk price discounts.”
Federal law prohibits Medicare from negotiating prices because of a law Congress passed in 2003 when it first extended Medicare benefits to prescription drugs. Welch describes the law as a midnight deal of quid pro quo that Congress entered into in order to pass the prescription drug coverage law.
But because Medicare can’t negotiate, it’s paying 58 percent more than the Veterans Administration for some drugs, according to a 2007 study from Families U.S.A. Welch said allowing Medicare to negotiate could save the federal government $156 billion over 10 years.
Trump, who will be inaugurated Jan. 20, told supporters a year ago that he supported prescription drug negotiation, according to Politico. He told the crowd he could save the Medicare program $300 billion a year.
Welch sent a handwritten note to Trump on Thursday and posted it on Twitter. The note read, “Very glad to see your support on the campaign trail for negotiating good deals on prescription drug purchases by Medicare. Lots of money to save. Take a look at my price negotiation bill.”
He said in an interview Trump should support the bill because he prides himself on being able to negotiate good business deals.
No Republicans have joined Welch on the bill so far.