By Jack Bernard, contributing columnist
PEACHTREE CITY, Ga. | Congress and President Biden are to be commended for beginning to negotiate some drug prices for Medicare beneficiaries under the Inflation Reduction Act (IRA). We wonder why did it take so long and why isn’t the drug negotiation benefit more comprehensive?
To know the answers, we should first look at the history of the Medicare program, which was finally created under the LBJ administration, and then for seniors only.
FDR, Truman and JFK wanted Medicare for All, not just seniors, but failed due to Dixiecrat and Republican opposition. The American Medical Association called it “socialism”, as did Reagan and Nixon in the early 60s. But political wheeler-dealer LBJ pushed through an age limited program as an exclusive benefit for the elderly.
The Medicare Part D outpatient drug benefit itself is relatively recent. It goes back to the George W. Bush administration, which pushed it through Congress in 2003 with the help of both key Republicans and Democrats. It took effect in 2006. It was initially unpopular, with 56 percent of the public opposing it.
“Privatization” was one key factor in President George W. getting his fellow Republicans to buy into the creation of Part D. Medicare D requires an enrollee to contract annually with a private insurance company which negotiates prices for some drugs (not all), charging premiums and deductibles to the enrollee).
To their credit, Biden and Congressional Democrats pushed through the Inflation Reduction Act, the biggest improvement ever to Medicare Part D. Not a single GOP House representative or senator voted for Medicare to negotiate drug prices.
However, there remains a lack of drug negotiations for all drugs. Plus, implementation starts in 2026… and even then, only 10 drugs are initially covered with the number slowly increasing over many years.
That date can and should be moved up. Further, all important drugs should be covered.
Medicare drug costs must be reduced with all deliberate speed. This cost reduction can be accomplished by simply expanding the national drug negotiations currently conducted by the Veterans Administration, as well as many well-established private entities (called Group Purchasing Organizations- like Premier, Inc. and Vizient) which already purchase billions via existing contracts. The only thing standing in the way is the undue influence of self-interested Big Pharma which has traditionally bought off American politicians of both parties.
With 1,745 lobbyists-most former government employees, including former congressmen of both parties, Big Pharma has a virtual army of lobbyists. Just last year, it spent $357 million on lobbying.
The situation can change, but only if we put pressure on our elected officials. Sounds off to Georgia’s Congressmen and Senators to introduce legislation to speed things up and cover all drugs. Let them know where you stand so that all Americans can get reasonably priced drugs, which will be good for our overall economy and country.
Follow Us