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The GOP is demonstrating their seriousness about the federal debt by holding the debt ceiling hostage, screaming “We’ve got to reform Medicare TODAY!” as a means for cutting government spending. But that’s talk — loud talk, to be sure, but talk nonetheless. How serious is the GOP really when it comes to trading cuts in Medicare spending for an increase in the debt ceiling?
One way to find out is simple: push for Medicare to be able to negotiate drug prices in the same way that the VA already does.
What would that save? According to the National Committee to Preserve Social Security and Medicare [pdf, with emphasis added]:
Allowing the Secretary [of HHS] to negotiate drug prices has the potential to save billions of dollars potentially up to $24 billion annually assuming that the mean reduction in drug prices obtained through the limited use of VA’s negotiation techniques could be applied to the Part D program’s overall prescription drug cost of $49 billion. These savings are more than adequate to close the “doughnut hole” coverage gap, estimated by the Congressional Budget Office to cost $42 billion over five years. Savings in excess of $42 billion could be used to improve other Medicare benefits and reducing the deficit.
Up to $24B a year is a nice start if you’re looking to save money in the Medicare program.
It’s a fast legislative fix, because most of the language they would need to craft has already been written. Find the VA authorization language, translate it from Veterans Affairs to HHS, and you’re there. There’s no need for long negotiations or drafting and redrafting the language, because it was already done when the VA got the authority to negotiate its drug prices.
It’s quick financial fix as well, since Medicare spending on drugs would drop as soon as the negotiations take effect. How about a simple “Medicare will not pay more than the best price negotiated by any other entity of the federal government” plan?
If the GOP is serious about requiring Medicare spending cuts in exchange for raising the debt ceiling, here’s a place to start. PhRMA might not like it, but we’ve all got to share in the sacrifices, right?
(“Money Pills 2″ photo h/t to Lisa Yarost, aka klynslis)
30 Comments
Simple, fast, easy, effective.
Every Dem who feels like they took a hit in 2010 b/c of Obama Care, should leap at the opportunity to run on this issue. A smart Dem would intorduce this legislation TODAY.
Nancy Pelosi can you find one smart person in your caucus to get this bill submitted tout suite?
This is the PERFECT pushback to the Paul Ryan plan, and demonstates that Dems have SOLUTIONS that don’t kill grandma.
Peterr, this is genius, real genius. Can we run you for Congress?
Well played, sir!
As we all know, PhRMA’s got Obama et al for their lovers on the side, but their long-term relationship has always been with the GOP. Will the GOP spurn those tens of millions of health-industry donation dollars to do something that really would lower the deficit and improve the nation’s overall standard of health care?
Let’s make them eat it.
Rep. Peterr?
I think I’ll stick with Rev. Peterr — but thanks!
O f course they won’t give up their love affair with PhARMA’s money, but it will show that there is an effective solution out there that does not involve killing off your grandma, and that the GOP is full of shit about caring about the deficit.
Let’s Paul Ryam for the Dickensian nightmare he is.
“Like!” Plus we can seriously cut into Rummy’s cash stream.
great idea…reccd…..Medicare saves millions of lives!!!
It won’t happen because the GOP and Dems are bought by big Pharm..recall Bush gave away billions to Pharm and Obama did the same…however we should point out to as many people as possible that allowing Medicare to neg for lower drug prices; intro generic drugs sooner and allowing imported drugs into the country would be a of great savings … the news media will not ask those questions to either party…
Vote for Pedrro!
and corps keep stepping up the giveaway
Salaries soar for top execs in Tennessee
Compensation jumps 24 percent among major companies
11:21 PM, May. 30, 2011 | 4Comments
Note: Pay packages are for the most recent fiscal year.
HCA Holdings wasn’t even publicly traded last year, but hefty payouts to Chief Executive Officer Richard M. Bracken and other investors lifted the hospital company leader’s annual pay package to the top of the corporate heap statewide.
With CEOs of hospital chains leading the way, the average compensation for the top executives among Tennessee’s major companies rose 24 percent, according to an analysis by executive compensation data firm Equilar Inc.
Bracken’s overall pay package jumped 212 percent to$38 million last year, reflecting mostly money that HCA paid out as dividends to investors who took the company private four years ago and then back to trading stock on Wall Street this spring.
Big executive pay increases in Tennessee — which mirror sizable gains on the national scene — came as many Middle Tennessee workers lower on the ladder didn’t get raises at all last year and others saw paychecks rise less than 3 percent.
Thanks for the specifics on potential savings. Thanks for the challenge to the Repubs. Yes, I know the corruption on both sides of the aisle when it comes to big Pharm. Still we might pray for a conversion??????
Appreciate your wanting to stay a Rev rather than Rep
Blessings, Peterr
So this is election strategy ? or doing the right thing ?
cuz that’s all we have heard from Dims,say enough to get elected & once in congress butter up to Pharma.
Remember Obama,he talked about drug importation & then once in office gave a F U to all those who believed his stance on drug importation.
Well you may be on to something…the Dims can keep fooling Americans on “Pharma” every time election comes around just like the GOP does with “teh Gays distraction” at election time.In the mean time,we are really no better off.
On the other hand who in their right mind would believe anything coming out from both the DEMS & GOP.
Cut PhRMa corporate welfare instead of Temporary Assistance for Needy Families (TANF).
Program cuts in some states and US Senate proposal floated [link, May 30, 2011]
Peter–
You seem to be implying that the Dims should try to grasp victory from the jaws of defeat instead of vice versa–at which they have proven quite adept.
Bravo!
If the GOP were a political party interested in anything but its own power, if it were interested in responsible, responsive government for anyone but the wealthy, it would be focusing on health care costs, not on the government’s health care spend. That it’s not, that it actively elides the latter from its discussion, is a clear signal that it doesn’t care about the lives of its human followers. It cares only about dominating them.
Where do the Dems stand? Its pronouncements parrot the GOP’s. They, too, focus only on health care dollars spent and not on what they are being spent on and what that expenditure achieves – or fails to achieve.
These parties have succeeded, temporarily, one hopes, in avoiding any discussion about the purpose or effectiveness of public policy. They focus solely on cost. They avoid both sets of issues when it comes to expenditures on military and intelligence spending. That should worry us more.
“The Love Police In Wrexham [UK]” (video, May 29, 2011)
What’s going on at FDL? Didn’t the polls reflect that before Obama enacted his sweetheart deal with PHARMA 80% of Dems wanted price negotiation? Do we just forget Obama cooked this meal you all seem so pleased to try to force the Repubs to eat?
the republicans apparently aren’t stupid enough to be serious about debt reduction (although they don’t mind pretending).
the question i have though, is are the democrats stupid enough to care about fed govt debt reduction? i’m not sure, but i’m beginning to think maybe they are.
$24 billion, you say? great, where else can we save money?
It has been a few years, but I recall seeing something like this phrasing in other government contracts or RFPs. I think it is, or used to be, pretty standard language that the government won’t be charged more than any other purchaser.
Maybe they just woke up & missed the backroom deals the DEM Oligarchy Mascot,Obama made with Pharma.
“Is the GOP Serious Enough about the Debt to Stand Up to PhRMA?”
Let’s hope so, since the Dems won’t.
Sen. Judd Gregg (R-New Hampshire) retired Jan. 2011 but hired as an international adviser to Goldman Sachs. [Link, May 31, 2011]
price of my meds purchased in France one month ago…2euros…about 3 dollars for what i pay 66 here in usa
WOW!
Hmmm, a financial retention scheme/big gift to PhRma and the medical device industry for their “captured profit center” called the US population.
From “#H.R. 5 Like A Thief In The Night” (May 11, 2011):
Action here.
Simple answer to the headline is NO
we lost another today
WHEN THE HELL ARE PEOPLE GONNA WAKE UP?
http://tinyurl.com/3o5htez
signed. thx for the link.
No. Next question?