Rep. Peter Welch (D-Vt.) and a coalition of 61 House members introduced the Medicare Prescription Drug Price Negotiation Act of 2010 Wednesday at a Capitol Hill press conference. Members called for swift action on the standalone bill, even as congressional leaders work with President Obama to pass comprehensive health reform legislation. The bill is based on a Welch-sponsored amendment that was included in the House-passed Affordable Health Care for America Act (HR 3962). The legislation would require the Secretary of Health and Human Services to negotiate prescription drug prices on behalf of Medicare Part D beneficiaries for the first time since 2004, a move that could save taxpayers 6 billion over ten years. Saving seniors and taxpayers money by putting the federal governments purchasing power to work is simply common sense. That we continue to pay retail rates for wholesale purchases is a crime, Rep. Welch said. Its long past time we put an end to a misguided policy that has costs seniors and taxpayers billions of dollars a year. Taxpayers fund more than three-quarters of the cost of the Medicare Part D drug benefit, accounting for billion worth of drugs in 2009 alone. Yet the program, which serves 28 million seniors, has been barred from negotiating rates with the pharmaceutical industry since 2004. The Department of Veterans Affairs has reduced costs significantly by negotiating rates. One Families USA report found that the top five Medicare Part D insurers …
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