HMOs and insurance companies

Medicare Fair Prescription Drug Price Act of 2007

atraub — Wed, 26 Sep 2007 17:52:29 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Percentage increase between 2000 and 2006 in the cost of brand-name drugs commonly prescribed to seniors: 53.6

Percentage rate of general inflation during this period: 20.1

Percentage of Americans who support the idea of Congress allowing the federal government to negotiate with drug companies for lower prices on Medicare prescription drugs: 80

Estimated amount taxpayers and Medicare beneficiaries would save in 2008 alone if the federal government negotiated drug prices directly with pharmaceutical companies: $30 billion

Lowest Medicare Part D price in 2006 for a year of treatment with Zocor, a popular drug for patients with high cholesterol: $1,485.96

Lowest VA price in 2006 for a year of treatment with Zocor: $127.44

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports: Often living on fixed incomes, America’s seniors struggle to cope with prescription drug prices that increase every year. The new Medicare prescription drug plan was ostensibly designed to save these seniors money on needed medications. But the plan provides far less savings than it could – both for the seniors it covers and for the taxpayers who bear the costs of the new plan – because it fails to take advantage of the federal government’s ability to negotiate for better prices by buying drugs in bulk. For example, if the federal government were to buy a million pills of cholesterol-lowering medication, enough for every Medicare recipient in the country, they could receive a very low price because of the huge quantity. Instead of realizing these savings, the program relies on individual insurance plans to make drug purchases. Because none of these individual insurers has the purchasing power of the federal government, the result is a less efficient system with higher prices.

Most industrialized countries, including Canada, use the government’s bulk purchasing power to bargain for better drug prices. Domestically, the United States Department of Veterans’ Affairs (VA) also uses this common-sense practice to reduce its costs. Studies suggest that the prices negotiated by the VA for many drugs are substantially lower than those offered under the new Medicare plan. Middle-class Americans, whether they are senior citizens, taxpayers or both, cannot afford to see the federal government squander this opportunity to rein in the ever-escalating costs of prescription drugs.

Quotes from Experts

Beyond this Bill

Additional Resources

“Medicare: Prescription Drugs,” from Families USA

National Legislative Association on Prescription Drug Prices

“Celebrating Pork: The Dubious Success of the Medicare Drug Benefit,” by Dean Baker from the Center for Economic Policy Research

“Price Negotiation Would Dramatically Lower the Cost of Prescription Drugs for Medicare Beneficiaries,” from the National Committee to Preserve Social Security and Medicare

Medicare Prescription Drug Price Negotiation Act of 2007

atraub — Wed, 26 Sep 2007 17:48:40 -0400

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Percentage increase between 2000 and 2006 in the cost of brand-name drugs commonly prescribed to seniors: 53.6

Percentage rate of general inflation during this period: 20.1

Percentage of Americans who support the idea of Congress allowing the federal government to negotiate with drug companies for lower prices on Medicare prescription drugs: 80

Estimated amount taxpayers and Medicare beneficiaries would save in 2008 alone if the federal government negotiated drug prices directly with pharmaceutical companies: $30 billion

Lowest Medicare Part D price in 2006 for a year of treatment with Zocor, a popular drug for patients with high cholesterol: $1,485.96

Lowest VA price in 2006 for a year of treatment with Zocor: $127.44

Overview/Summary

Middle Class Position Analysis

Quotes from Experts

Beyond this Bill

Additional Resources

“Medicare: Prescription Drugs,” from Families USA

National Legislative Association on Prescription Drug Prices

“Celebrating Pork: The Dubious Success of the Medicare Drug Benefit,” by Dean Baker from the Center for Economic Policy Research

“Price Negotiation Would Dramatically Lower the Cost of Prescription Drugs for Medicare Beneficiaries,” from the National Committee to Preserve Social Security and Medicare

Small Business Health Fairness Act of 2004

atraub — Tue, 25 Sep 2007 13:50:01 -0400

Legislation

The middle class

Opposes

Video Summary

Injustice Facts

Number of middle-class households that lack health insurance: 1 in 6
Percentage of small businesses that did not offer health insurance to employees in 2004: 37
Proportion of small businesses that would see their premiums increase under this legislation: 4 out of 5
Predicted increase in the number of uninsured Americans under this legislation: 250,000 to 1 million
Average estimated increase in health care premiums for small business under this legislation: 6%
Average estimated increase in health care premiums for small employers with state-regulated coverage under this legislation: 23%

Overview/Summary

Middle Class Position Analysis

The Middle Class Opposes: Enhancing the ability of small businesses to offer quality health insurance would go a long way towards reducing the number of uninsured Americans. But the devil is in the details: by exempting AHPs from state regulations, this bill increases average health care costs for small businesses and reduces the number of workers with health insurance. For example, state laws prevent insurance plans from cherry-picking only the healthiest people for insurance coverage, allowing businesses with relatively healthy employees to join for less money, while charging higher rates to those with older and sicker workers. This would destabilize the health care marketplace: state-regulated health care plans would see their healthy workers siphoned off to the AHPs, leaving them with a disproportionate number of older and sicker employees who are more expensive to cover. Health care premiums for all small businesses except those with the healthiest workforce would soar, and companies unable to cope with the increased costs would leave their employees at risk of becoming uninsured. For this reason, the Congressional Budget Office has projected that AHP legislation, if enacted, would result in higher premiums for four out of five small employers.

Quotes from Experts

Beyond this Bill

Additional Resources

Small Business Health Fairness Act of 2005

atraub — Mon, 24 Sep 2007 15:13:41 -0400

Legislation

The middle class

Opposes

Video Summary

Injustice Facts

Number of middle-class households that lack health insurance: 1 in 6
Percentage of small businesses that did not offer health insurance to employees in 2005: 41
Proportion of small businesses that would see their premiums increase under this legislation: 4 out of 5
Average estimated percentage increase in health care premiums for small business under this legislation: 6
Average estimated percentage increase in health care premiums for small employers with state-regulated coverage under this legislation: 23
Predicted increase in the number of uninsured Americans under this legislation: 250,000 to 1 million

Overview/Summary

Middle Class Position Analysis

The Middle Class Opposes. Enhancing the ability of small businesses to offer quality health insurance would go a long way towards reducing the number of uninsured Americans. But the devil is in the details: by exempting AHPs from state regulations, studies indicate that this bill would increase average health care costs for small businesses and reduce the number of workers with health insurance. For example, state laws prevent insurance plans from cherry-picking only the healthiest people for insurance coverage, allowing businesses with relatively healthy employees to join for less money, while charging higher rates to those with older and sicker workers. Exemption from these laws would destabilize the health care marketplace: state-regulated health care plans would see their healthy workers siphoned off to the AHPs, leaving them with a disproportionate number of older and sicker employees who are more expensive to cover. Health care premiums for all small businesses except those with the healthiest workforce would soar, and companies unable to cope with the increased costs would leave their employees at risk of becoming uninsured. For this reason, the Congressional Budget Office has projected that AHP legislation, if enacted, would result in higher premiums for four out of five small employers.

Quotes from Experts

Beyond this Bill

Additional Resources

Healthy Mothers And Healthy Babies Access To Care Act of 2004

atraub — Wed, 19 Sep 2007 14:51:38 -0400

Legislation

The middle class

Opposes

Video Summary

Injustice Facts

Percentage of the nation’s health care expenditures made up by medical malpractice premiums: 0.62%
Maximum non-economic damages payable under the provisions of this bill to a baby who will go through life completely paralyzed due to the actions of a negligent doctor: $250,000
Maximum punitive damages under the provisions of this bill imposed on a doctor who has similarly paralyzed seven other newborns through the same negligence: $250,000
Rank of “reducing jury awards in malpractice lawsuits” on the list of health care priorities for Congress and the President in 2005, according to a poll by the Kaiser Family Foundation and the Harvard School of Public Health: 11 out of 12
Number of times President Bush mentioned “junk” or “frivolous” lawsuits during a recent speech on health care policy: 10

Overview/Summary

Middle Class Position Analysis

The Middle Class Opposes: The middle class endorses a "nay" vote on the procedural question and opposes the substance of the bill. This bill, misnamed the Healthy Mothers and Healthy Babies Access to Care Act, places limits on the legal rights of pregnant women and their babies. When a baby is killed, maimed, or brain-damaged because of medical negligence or malpractice, no amount of money can truly make a family whole. Nevertheless, it is the non-economic damages (damages beyond compensation for medical bills and lost income) from a lawsuit that provide some compensation. This bill would have imposed a one-size-fits-all limit on these damages, no matter how devastating the malpractice. This hits the middle class particularly hard. High-income plaintiffs are awarded higher economic damages because they lose more money from being unable to work. Thus for low- and middle-income victims, non-economic damages, which consider pain and suffering and quality of life, make up a larger proportion of the whole award. It is that prospect that enables middle income people to attract legal support that they would be unable to afford if they were required to pay hourly rates. In addition, the threat of significant liability helps deter hospitals from cutting corners on safety and stops pharmaceutical corporations from selling drugs they know to be dangerous. While the bill’s proponents argue that it would lower the cost of malpractice insurance for obstetricians, there is no evidence linking high malpractice insurance premiums to the cost of lawsuits. In fact, insurance industry representatives have said that they would not commit to lowering insurance rates if medical malpractice bills like this one are passed.

HMOs and insurance companies

Medicare Fair Prescription Drug Price Act of 2007

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Medicare Prescription Drug Price Negotiation Act of 2007

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Small Business Health Fairness Act of 2004

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Small Business Health Fairness Act of 2005

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources

Healthy Mothers And Healthy Babies Access To Care Act of 2004

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

Related Blog: Header

Quotes from Experts

Related Blog: Text

Beyond this Bill

Related Blog: Link

Additional Resources