Medicare 'drug benefit' source: www.retiredamericans.org

[Guest guest]

Soaring drug prices are easily outpacing inflation, according to two =

studies released this week. The two reports, one by Families USA and the =

other by AARP, found that prices for brand-name prescription drugs rose =

at least three times the rate of inflation last year. Many seniors live =

on fixed incomes that are, at best, adjusted for inflation.=20

The reports concluded that these price hikes OFFSET SAVINGS from =

Medicare's drug 'discount cards', which have been 'estimated' to save =

seniors approximately 17%.=20

The full 'drug benefit', slated to begin in 2006, will have NO influence =

on price increases because the new law PROHIBITS Medicare from =

negotiating lower drug prices!=20

How can the average senior, living on approximately $14,000 annually, =

afford double-digit price increases for drugs? Seniors desperately need =

meaningful reforms that rein in an industry that will stop at nothing to =

protect their outrageous profits.=20

Drug makers justify their high profits are necessary for the research =

and development required to create new medicines. -->However, critics =

argue that the federal government contributes to a majority of research =

for new drugs and that high U.S. prices compensate drug manufacturers =

for their advertising and lobbying activities.=20

Generic Drugs Marked Up Close to 2000%

The Wall Street Journal has found pharmacies are purchasing generic =

drugs for pennies and marking them up almost 2000%. According to the =

Journal's review of wholesaler invoices, a 90-day supply of the generic =

for Prozac costs the pharmacy $4.00 but a review of the Medicare website =

found one card sponsor offering three 30-day supplies for $84.15. =

--.>Further research found that the warehouse distributor Costco sold =

100 capsules for $14.94.=20

Spokespersons for pharmacies and pharmacy benefit managers claimed that =

examining generic markups were a flawed and misleading view, explaining =

that generic markups make up for brand-name drugs, which are normally =

sold without any profit. Supporters of the Medicare 'discount cards' =

claim that beneficiaries will see savings of 30% to 60% on generic =

(only) drugs, but this remains to be proven.=20

Just days away from June 1, the first day Medicare's drug 'discount =

cards' will go into effect, indications are enrollment has been very =

slow. But the Centers for Medicare and Medicaid Services (CMS)expects =

7.3 million will sign up for the cards, ultimately. Time will tell.=20

There are currently over 70 cards to choose from, yet details on all =

cards are still not available on Medicare's website. In addition, drug =

prices have fluctuated from week to week. -->Once seniors sign up for a =

card they are LOCKED IN FOR A YEAR, whereas card sponsors are free to =

change their discounts and drug offerings weekly!=20

Many seniors are finding the drug 'discount cards' cannot compete with =

cheaper prices through Internet pharmacies or from Canada.=20

" We're not surprised that seniors are less than enthusiastic, " said =

Burks, secretary-treasurer of the Alliance. " The only guarantee =

with these cards has been 100% confusion. We've heard from members who =

are struggling to make sense of the cards only to give up entirely. Our =

seniors deserve far better than this. " =20

In a move to help low-income beneficiaries--living on less than =

$13,000.00 per year--who will benefit from a $600 credit on the card, a =

diverse group of advocates for seniors and minority populations has =

begun a nationwide campaign to ensure these beneficiaries are enrolled =

in a card. Low-income groups are typically hard to reach, and many are =

not aware of the credit or their eligibility. The government plans to =

spend $4.6 million on outreach programs in urban and rural areas to =

mobilize efforts by community groups to enroll low-income seniors and =

persons with disabilities in the discount cards. Perhaps this money =

should be used to pay for the drugs themselves.

=20

Join a live discussion forum with Coyle, executive director of =

the Alliance, who will answer questions about the 2003 Medicare =

prescription drug law, drug discount cards, the scandals surrounding =

passage of the law and how all of this will affect the 2004 elections. =

The live discussion will be held Wednesday, June 9 from 2:00 to 3:00 pm. =

Submit your questions before or during the chat at =

http://www.retiredamericans.org/index.php?tg=3Doml&file=3Dforum_live_main=

..html or email ARAcommunications@....=20

California Also to Buy Drugs from Canada

By an overwhelming vote of 48-17, the state assembly agreed to the =

creation of a website designed to help California citizens buy cheaper =

drugs in Canada. The site will list drug prices for California versus =

those offered by Canadian pharmacies that meet the state's safety =

requirements. -->Similar websites have already been set up by Wisconsin, =

New Hampshire, North Dakota, Minnesota and Rhode Island.=20

From Industry Advocate to Industry Regulator

-->An analysis by the Denver Post found that more than 100 top officials =

in the Bush Administration were once lobbyists or lawyers for the =

industry they are now charged with regulating. These former industry =

advocates are now creating and implementing profound policy shifts that =

benefit their industries.=20

Three of these lobbyists-turned-policymakers now regulate the drug =

industry: Ann-Marie Lynch, a top aide for the Department of Health and =

Human Services who used to lobby for PhRMA; Troy, a former =

attorney for drug companies who is currently chief counsel at the Food =

and Drug Administration, and Scully, a former hospital lobbyist =

who headed CMS until December and was instrumental in drafting the =

Medicare law. -->Scully allegedly threatened to fire Medicare's chief =

actuary, civil servant , if he revealed higher cost =

estimates for the Medicare bill.=20

While the practice of appointing officials who share the party's =

viewpoints is not uncommon, the sheer number of former industry =

lobbyists, attorneys and spokespersons in this administration is =

unprecedented.=20

source: www.retiredamericans.org