GOP stops Medicare drug price measure
WASHINGTON -- Senate Republicans yesterday blocked a bill that would permit the federal government to negotiate lower drug prices for Medicare beneficiaries, a measure backed by Massachusetts Senator Edward M. Kennedy and other Democrats.
The 55-42 vote was five short of what Democrats needed to end debate and begin voting. While Democrats hold majorities in the US House and Senate , yesterday's procedural move by Republicans could indicate rough waters for other proposals that affect pharmaceutical and biotechnology companies, including legislation to permit generic versions of biologic drugs.
The Senate's Medicare bill would allow, but not mandate, federal government price negotiations on behalf of millions of Americans who, since last year , have been able to receive prescription drug coverage through Medicare. Supporters say negotiations could produce significant savings that could help close a coverage gap known as the "doughnut hole ," but Congressional Budget Office analyses suggested savings would be "negligible."
Jon Kyl , Republican from Arizona and a Senate leader, said he opposed the measure because it would discourage the development of new drugs. "Do you want legislation passed that bankrupts drug companies?" Kyl asked after the Senate session.
"Drug industry profits have soared as they take advantage of legislation that is unfairly tilted toward company bottom lines, not seniors' health. It's time for Congress to put the needs of seniors first," countered Kennedy.
The pharmaceutical and biotechnology industries have spent millions of dollars lobbying against drug-price negotiations and other proposals .
Advertising this week by the Biotechnology Industry Organization in such publications as Roll Call , which circulates on Capitol Hill, outlines six principles to guide congressional efforts to speed generic biologic drugs to market, including those that "ensure patient safety" and "preserve incentives" for innovation. Meanwhile, an advertisement by the Pharmaceutical Research and Manufacturers of America, the drug industry's trade organization, declares that 89 percent of voters do not want the government to negotiate Medicare drug prices.
Senator Charles E. Schumer , Democrat of New York and co sponsor of a bill that would permit generic biologic sales in the United States, acknowledged the influence of industry lobbyists .
"Obviously, these are tough issues because of the power of the pharmaceutical industry, but we are going to pursue generic biologics in both the House and the Senate," Schumer said.
Representative Rosa L. DeLauro , who backs restrictions on advertising for drugs with questionable safety records, was optimistic that yesterday's setback would not carry over to that proposal, also hotly contested by industry lobbyists.
DeLauro said advertising restrictions are a "completely separate issue" that will come up in the subcommittee the Connecticut Democrat chairs.
In the Senate , Democrats haven't given up on removing a restriction that now bars direct price negotiations by Medicare, a government-run health insurance program that covers roughly 40 million older and disabled Americans.
Schumer said supporters in previous votes were not present yesterday; Democrats lack just two or three more backers to push the measure to a vote, he said.
Max Baucus , Senate Finance chairman and the bill's sponsor, said he will reintroduce an identical or similar measure.
"The Senate missed a great opportunity today to help seniors," said Baucus, Democrat of Montana . "There are certainly a majority of senators who want to give the Senate that opportunity again. There will be a time."
Diedtra Henderson can be reached at dhenderson@globe.com. 