Tuesday, June 27, 2006
Democrats to unveil their proposed changes for drug benefit
By: KEVIN FREKING - Associated Press Writer
WASHINGTON -- Any buyer knows the advantage of buying in bulk.
Think about the advantage when you're negotiating on behalf of 43 million elderly and disabled Americans. That's the image painted by Democratic lawmakers who want the federal government to negotiate drug prices on behalf of Medicare recipients.
The Democrats envision using the money that is saved to close a gap in coverage, called the "doughnut hole," that will affect an estimated 6.9 million people this year.
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The Democratic proposal, being introduced Tuesday, provides an alternative viewpoint to how the drug benefit should be shaped. Currently, seniors and the disabled select from dozens of plans offered in their state by private insurers, who negotiate prices. The Democratic proposal would let beneficiaries choose a plan administered by the federal government.
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Democratic lawmakers contend that insurers do not have the clout the federal government would have when negotiating the purchase of medicine for seniors. They cited a study from the advocacy group, Families USA, which indicated that the Veterans Affairs prices for drugs were consistently lower than prices charged by Part D plans. The median price difference was 46 percent.
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http://www.nctimes.com/articles/2006/06/27/news/politics/08_01_065_26_06.txt