PhRMA CEO Tauzin Expresses Opposition to Government Negotiating Medicare Drug Prices
Allowing Medicare to negotiate prescription drug prices on behalf of beneficiaries could reduce the number of drugs the program offers and result in higher costs for beneficiaries, Pharmaceutical Research and Manufacturers of America President and CEO Billy Tauzin said Wednesday, CQ HealthBeat reports. According to Tauzin, Medicare now offers access to thousands of drugs because the program relies on private-sector competition. Tauzin, speaking at a media roundtable, said, "When you put the government in the process you freeze out the private sector." He added that lower-than-expected monthly Medicare prescription drug benefit premiums and lower-than-estimated costs to the federal government show that Congress should not change the program.
HHS Secretary-designate and former Senate Majority Leader Tom Daschle (D-S.D.) last week in testimony before the Senate Health, Education, Labor and Pensions Committee said the idea of allowing the secretary to negotiate drug prices "ought to be evaluated and looked at." Supporters of the idea have said it could save taxpayers billions of dollars and lower drug prices for all U.S. residents (Carey, CQ HealthBeat, 1/14).
Health Reform Involvement
Tauzin said the drug industry will be "be a major part of the solution to health care access and affordability in this country." He said, "We could really improve the insurance coverage for most Americans by working on copay[ment]s," noting that high out-of-pocket costs prevent some consumers from using prescribed medications (Young, The Hill, 1/14).
Tauzin also said the new FDA commissioner should have more resources to help "keep our drug supply safe and secure" and to attract and keep talented workers. Tauzin also said the position should have a fixed term of service, in order to keep it "a little politically insulated" (CQ HealthBeat, 1/14).
