Tuesday, September 29, 2009

North Of The Border

Sen. Byron Dorgan is tossing about lit sticks of dynamite into the Baucus plan's deal with Big Pharma, and I for one am willing to supply the matches.
A Senate Democratic leader is hoping to blow up the deal reached between the White House, drug makers and Senate Finance Committee Chairman Max Baucus (D-Mont.), by introducing an amendment on the floor to allow prescription drugs to be re-imported from Canada.

It's one of the simplest ways to reduce health care costs but was ruled out by the agreement, which limits Big Pharma's contribution to health care reform to $80 billion over ten years.

North Dakota Sen. Byron Dorgan, a member of Democratic leadership, isn't a party to that bargain. "Senator Dorgan intends to offer an amendment to the health reform bill and his expectation is that it will be one of the first amendments considered," his spokesman Justin Kitsch told HuffPost in an e-mail. "Prescription drug importation is an immediate way to put downward pressure on health care costs. It has bipartisan support, and has been endorsed by groups such as the National Federation of Independent Businesses and AARP."

U.S. patients pay far more than the rest of the world for prescription drugs. The Canadian government keeps prices down by using its purchasing power to negotiate for lower rates. Dorgan wants American consumers in on the deal.

A bill to allow re-importation -- S. 1232 - has 30 cosponsors, several Republicans among them, including Olympia Snowe and Susan Collins of Maine, John Thune (S.D.) and David Vitter (La.).

The Congressional Budget Office estimates that the bill would result in $50 billion in direct savings over the next decade, with $10.6 billion of that being savings to the federal government.

The problem is that $50 billion is going to Big Pharma, and that's just a small slice of the pie for the drug industry that they are expecting to get.

Threatening to cut off that windfall is going to spark a rather nasty battle, but it's one that needs to be decided and decided now. Good for Byron Dorgan.

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