Lowering the Cost of Prescription Drugs

Kennedy Worked to Increase the Availability of Generic Drugs During consideration of prescription drug legislation in the 107th and 108th congresses, Senator Kennedy sponsored amendments closing loopholes that delay the introduction of generic drugs to the market. For far too long, pharmaceutical companies have exploited loopholes in drug patent laws, allowing them to continuously apply for and receive 30-month extensions on their patents. This has prevented generic drugs – sold at deep discounts compared to brand name drugs – from reaching the market. Senator Kennedy’s amendment limited to one the number of automatic 30-month stays brand name drug companies could receive on a patent, as opposed to the unlimited number of stays currently enjoyed by companies. Unfortunately, a watered-down version of Kennedy’s amendment was included in the conference report to the Medicare prescription drug benefit.

Kennedy Supported the Reimportation of Prescription Drugs Senator Kennedy has consistently supported legalizing the reimportation of safe and cheap prescription drugs from Canada. During consideration of prescription drug legislation in the 107th and 108th Congresses, Senator Kennedy supported regulations that permitted pharmacists and wholesalers to import prescription drugs from Canada into the United States, and provided individuals with the same opportunity as long as medication was for personal use and a 90-day supply or less. In addition, the bill included provisions implementing strict precautions to protect the public, and ensure all prescription drugs sold in the United States are safe and effective. Unfortunately, despite overwhelming support in the Senate, the House of Representatives failed to act on the measure. Kennedy has reintroduced the Pharmaceutical Market Access and Drug Safety Act of 2005, and will work with his colleagues to ensure it receives consideration in the Senate.

Kennedy Fought for Real Prescription Drug Relief for Seniors For over 25 years, Senator Kennedy has led the effort to provide real prescription drug relief for America’s seniors. In 2003, he worked with a bipartisan group of senators on legislation that would have created a prescription drug benefit within Medicare. Kennedy’s bill included substantial benefits for low-income seniors, catastrophic coverage assistance, and real savings for beneficiaries. In addition, the bill would have provided access to all seniors. Although Senator Kennedy’s legislation passed in the Senate, Republican leaders and the White House insisted on a proposal that benefited the large pharmaceutical companies and left Medicare seniors without little or no relief. The Republican bill barred Medicare from negotiating discounts on drug prices for beneficiaries, and included huge subsidies for HMOs and drug companies at the expense of seniors. Senator Kennedy opposed the Republican plan. [H.R.1, PL 108-173, 12/8/2003]

• Kennedy Criticized the Administration’s So-Called Rx Drug Discount Cards Responding to the Bush Administration’s proposed Medicare discount cards, Kennedy deplored the program as a discount for large corporations. Under the program, which went into affect after passage of prescription drug legislation in 2003, companies that offer cards are allowed to use Medicare to negotiate discounts with drug manufacturers, but are not required to pass any discounts along to Medicare beneficiaries.

Kennedy Worked to Reduce Drug Costs for Safety Net Hospitals In 2003, Senator Kennedy cosponsored bipartisan legislation to amend the Medicaid program and allow “safety net hospitals” to negotiate with pharmaceutical companies for deeper discounts on inpatient drugs. Safety net hospitals provide a disproportionate share of medical care to low-income and uninsured patients. More than a decade ago, Congress passed legislation to ensure safety net hospitals had the opportunity to obtain lower priced drugs from pharmaceutical companies. Unfortunately, the law was interpreted to apply only to outpatient drugs, forcing hospitals to pay higher prescription drug costs for hospital patients. With the rising cost of prescription drugs, and increased pressure on Medicaid spending, it is essential that these hospitals be provided with the savings necessary for them to continue providing care to patients. [H.R. 1, PL 108-173, 12/8/2003]