Rx Drugs

President Bush Feb. 11 touted the tripartisan Medicare reform plan that is expected to be formally introduced in the Senate later this month. While not formally endorsing the tripartisan proposal, Bush's statements are significant because they insinuate the White House clearly favors the plan that has attracted the support of Sens. John Breaux (D-LA), James Jeffords (I-VT), and Chuck Grassley (R-IA).

Lawmakers of both parties and beneficiary groups are reacting with skepticism to the administration's proposal to reform Medicare and craft a comprehensive prescription drug program with a net of $190 billion. Congress is expected to significantly increase this figure as lawmakers are calling for at least $300 billion for a drug benefit.

The administration has floated its $190 billion proposal recently and has laid out its plans for Medicare reform, a discount card and prescription drug coverage in a Jan. 28 White House fact sheet.

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A new bipartisan prescription drug bill has been introduced in the House but Republicans and conservative Democrats are not embracing the measure.

In a major development, a powerful House GOP lawmaker is demanding that the Bush administration quickly provide Congress with many more details on the Medicare policies outlined in the president's fiscal year 2003 budget request. HHS Secretary Tommy Thompson has agreed to comply with the request, signaling that the White House will unveil new plans on the government's policy regarding reimbursements to providers.

After failing to convince Congress to pass legislation on its prescription drug discount card plan, the Bush administration has shifted its political strategy on the issue by halting all lobbying efforts until the courts have ruled on a pending legal challenge by pharmacy groups.

House Democrats see generic drugs as a key issue in both upcoming legislation on pharmaceutical drug user-fee reauthorization and Medicare. Rep. Sherrod Brown (D-OH), the top Democrat on the House Energy and Commerce, health subcommittee, said Democrats will consider attaching Hatch-Waxman drug patent reforms to the reauthorization of the Prescription Drug User Fee Act (PDUFA), but the party may also decide to tackle the reforms through other legislation such as the Greater Access for Affordable Pharmaceuticals (GAPP) Act or compulsory licensing.

In an attempt to significantly enhance patient access to prescription drugs, HHS has approved a "radical" Illinois waiver request and crafted a Medicaid model program that administration officials say will provide states with a roadmap for delivering more cost-effective drug coverage.

In a flurry of new proposals, the White House this week announced proposals to enhance prescription drug coverage for Medicaid beneficiaries, to increase Medicare+Choice funding, and to create two Medigap plans. The initiatives are aimed at providing immediate benefits to seniors as policymakers continue to seek a consensus approach on Medicare reform.

A Medicare advocacy group is calling for a congressional probe of drug pricing policies following the launch of a new drug discount card for Medicare beneficiaries by a leading pharmaceutical manufacturer.

The Pfizer Inc. initiative should be a "wake-up call" for Congress and the administration to explore why pharmaceutical companies are not offering discounts to all Americans, says Medicare Rights Center (MRC) President Robert Hayes.