Congress Unlikely to Make Hatch-Waxman Changes But May Pass New Reimportation Measure, CQ’s Carey Reports

Prescription drug prices will receive continued scrutiny on Capitol Hill this week as the Senate Health, Education, Labor and Pensions Committee holds "yet another" hearing on whether brand-name drug companies delay the entrance of generics to the market, Congressional Quarterly's Mary Agnes Carey reports in this week's "Congressional Quarterly Audio Report." Still, Carey thinks it "unlikely" that Congress will ultimately make changes to the 1984 Hatch-Waxman Act, which governs generic access, noting that "[t]here has not been a widespread bipartisan push to alter this law." Meanwhile, a group of legislators is pushing again to pass legislation that would allow the "reimportation" of FDA-approved drugs from Canada, where prices are lower, into the United States. HHS refused to implement a previously passed reimportation bill, saying it could not guarantee the safety of drugs that entered the United States in this manner. But supporters contend the new legislation would address those concerns by allowing drug reimportation only from Canada, where drug officials share a "good relationship" with the FDA and perform safety inspections frequently. Carey projects that the legislation will pass Congress again, leaving the decision on implementation to HHS Secretary Tommy Thompson.

House May Move Soon on Medicare Rx
Carey also recounts newly emerging details about Medicare prescription drug legislation expected soon from House Republicans. As in previous years, the plan would rely on private insurers to provide drug coverage to seniors, with the government paying 80% of the cost and beneficiaries 20%. The bill will also likely contain higher payments for Medicare+Choice plans, which have been "fleeing Medicare in droves citing low reimbursements," and for providers, many of whom are limiting their Medicare practices following a 5.4% reimbursement cut that took effect earlier this year. Carey reports the House Ways and Means and Commerce committees will likely mark up the legislation during the week of May 13, with full House passage expected before the Memorial Day recess. Action in the Senate, however, is less clear: The House GOP bill "would be difficult to get to the Senate floor" without Republican control of that chamber, but Democrats remain "undecided over what to do" on the prescription drug front. Sen. Charles Grassley (R-Iowa), who has developed a separate prescription drug measure, will "likely push Finance Committee Chair Max Baucus (D-Mont.) to mark up the bill" once the Congressional Budget Office has completed a review of its projected costs. Carey's full report, which also discusses mental health parity legislation, is available online (Carey, "Congressional Quarterly Audio Report," 4/29).