Since 12-25-05
VA Offers Better Prices Than What Will Be Available Through New Medicare Drug Plans, Study Says
Since 12-25-05
From:
Waspscpo@aol.com [mailto:Waspscpo@aol.com]
Sent: Friday, December 23, 2005 1:09 PM
To: undisclosed-recipients:
Subject: VA Offers Better Prices Than What Will Be Available........
Prescription drug prices under the new Medicare drug benefit are considerably
higher than the prices negotiated by the
Department of Veterans Affairs, according to a study by
Families USA, the
St. Petersburg Times reports (Nohlgren [1], St. Petersburg Times, 12/22).
The study found that the median price difference for a one-year supply of the 20
drugs most commonly prescribed to seniors is 48.2% (Families USA
release, 12/21). The VA plan negotiates prescription drug prices for its
five million members, while the 2003 Medicare law prohibits the government from
directly negotiating with drug makers to determine prices for the program's 43
million beneficiaries (Nohlgren [1], St. Petersburg Times, 12/22).
For the survey, Families USA analyzed recent prices of a one-year supply of 20
prescription drugs in plans offered in a Medicare region in Ohio and a region in
Delaware, Maryland and Washington, D.C., and compared the prices with those in
the VA drug plan (Posner, CongressDaily, 12/21). According to the survey, the
lowest available Medicare plan drug price was higher than the lowest VA price
for 19 of the 20 drugs studied (Tannenbaum, Bloomberg/Orange County Register,
12/22).
Survey Results
Acid reflux treatment Nexium was the only medication for which the VA price is
higher than the Medicare price. The lowest available price for a one-year Nexium
supply in a Medicare drug plan is $836.28, compared with $968.40 under the VA
plan. The survey also found:
A one-year supply of the osteoporosis treatment Fosamax is $493.32 under the VA
plan, compared with the lowest available Medicare prescription drug plan price
of $709.68;
Acid reflux medication Protonix is $253.32 under the VA plan, compared with the
lowest available Medicare prescription drug plan price of $1,080;
Cholesterol-reducing medication Lipitor is $497.16 under the VA plan, compared
with the lowest available Medicare prescription drug plan price of $717.84 (Nohlgren
[1], St. Petersburg Times, 12/22);
According to the study, "It is very likely that beneficiaries -- and taxpayers
who subsidize the Medicare drug benefit -- are paying significantly more than
they would" if Medicare negotiated prices (Nohlgren [1], St. Petersburg Times,
12/22).
Comments
Families USA Executive Director Ron Pollack said, "The huge prices paid by
seniors and taxpayers could have been avoided if Congress and the president had
not caved in to the pressure of the drug lobby" (CongressDaily, 12/21). David
Lemmon of Families USA said, "People ought to ask themselves, 'Why do we have a
plan set up to prevent a Medicare pool with 42 million beneficiaries negotiating
a cheaper price?'
In the end, that's what the pharmaceutical industry opposed for so long."
However, Medicare spokesperson Peter Ashkenaz said the study presents "a tired
old ideological argument," adding that Families USA "wants government price
controls and a one-size-fits-all benefit."
Ashkenaz noted the VA plan limits drug choices and requires members to use VA
pharmacies, while Medicare plans cover at least two medications from every major
drug category and allow beneficiaries to fill prescriptions at retail drug
stores. "For example, in Georgia there are nine VA pharmacies, compared to 1,833
local pharmacies," Ashkenaz said (Nohlgren [1], St. Petersburg Times, 12/22).
CMS spokesperson Gary Karr said the drug benefit "is a competitive system
that's bringing lower prices and better coverage than anyone expected"
(Bloomberg/Orange County Register, 12/22).
The
report is available
online. Note: You must have Adobe Acrobat Reader to view the report.
America's
Health Insurance Plans Survey
In related news, 57% of beneficiaries who have enrolled in a Medicare
prescription plan say they think their efforts to sign up were worthwhile and
would recommend the benefit to others, according to a telephone survey of 401
enrolled beneficiaries by
America's Health Insurance Plans.
Sixteen percent of respondents said they thought the effort to enroll was not
worthwhile. In addition, 82% of respondents said their plan would cover the
drugs they need, while 7% said some of their drugs would not be covered.
The survey also found that 28% of respondents used the Internet, either on their
own or with assistance, while choosing a plan. Karen Ignagni, president of AHIP,
said, "Seniors are confirming that having a choice of drug plans works for them"
(Nohlgren [2],
St. Petersburg Times, 12/22).
Broadcast
Coverage
Several broadcast programs reported on the Medicare prescription drug benefit:
NBC's
"Nightly
News": The segment includes comments from
CMS Administrator Mark McClellan; Gail Siegel of the
Educational Alliance; and Robert Zorowitz, chief medical officer at the
Hebrew Home for the Aged (Bazell, "Nightly News," NBC, 12/21). The complete
transcript and segment in Windows Media are available
online.
NPR's
"Morning
Edition": The segment reports on how some Medicare beneficiaries are relying
on their adult children to assist them in registering for the benefit, including
the experience of NPR health policy correspondent Julie Rovner helping her
mother to enroll. The segment includes comments from Suzanne Jackson, director
of the
Health Insurance Counseling Project at George Washington University Law School,
the designated Medicare insurance counseling program for Washington, D.C. (Rovner,
"Morning Edition," NPR, 12/22). The complete segment is available
online in RealPlayer.
NPR's
"Morning Edition": The segment examines the "next hurdle" for the government of
ensuring that beneficiaries' medical information is entered into the Medicare
database so pharmacists can access it when they fill prescriptions. The segment
includes comments from Tom Clark, director of policy and advocacy at the
American Society of Consultant Pharmacists; Ed Dillon, pharmacist at Grubb's
Care Pharmacy; and McClellan (Silberner, "Morning Edition," NPR, 12/22). A
transcript of the segment is available
online. The complete segment is available
online in RealPlayer.
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