Competitive Bidding for Medicare Part D

I sent this "love letter" to my two Senators as well as

my representative.

                                                                       July 26, 2011



President Barrack Obama
1600 Pennsylvania Avenue
Washington, DC 20500


Subject: Competitive Bidding for Prescription Drugs


Dear Mr. President:


I am among the Americans who recognize the need to reduce the federal deficit. Introducing competitive bidding for prescription drugs purchased under Medicare would significantly reduce the federal deficit while also easing some of the burden facing America’s retirees.


In 2010, the Medicare Part D prescription drug plans accounted for $55.9 billion (or 11%) of Medicare's total $509 billion in expenditures, according to analysis by the Kaiser Family Foundation. In 2007, a year after Part D was added, Medicare spent $44 billion on prescription drugs.


Based on the 2010 Kaiser data, competitive bidding savings of just 10% would reduce the Medicare budget by $5.5 billion a year. All it would take is your leadership to help pass Senate Bill S. 44, the Medicare Prescription Drug Price Negotiation Act of 2011. If enacted, it would direct the Secretary of Health and Human Services (HHS) to negotiate the prices that may be charged to Medicare Part D prescription drug plans with pharmaceutical manufacturers.


Retirees on Medicare would also save money as a result of Medicare competitively bidding on prescription drugs because deductibles and co-pays on cheaper drugs would lower their costs.


The Veterans Administration, Medicaid, Health Maintenance Organizations, and hospitals use competitive bidding for prescription drugs. Competitive bidding for large volume purchases is a normal practice in virtually every part of the private sector, among not-for-profit organizations, and many government agencies. Medicare should not be any different.


I ask that as you do everything in your power to work toward the passage of S. 44 in the Senate, and have a counterpart passed in the House as part of the deficit reduction package. The only winners of not having Medicare competitive bidding for prescription drugs are the pharmaceutical companies.


Without competitive bidding, America’s retirees come out losers at a time when their fixed incomes are dangerously stretched over the limit. I hope to hear from you that you will be an advocate for such legislation that will be a savings to seniors and the federal government.


                                                                           Sincerely,
                                                                           Dot Calm


p.s.    You may remember that competitive bidding was discontinued during the Bush Administration to satisfy his friends in the pharmaceutical industry.