SENIOR ASSEMBLY FEDERAL PROPOSAL NO. 6

INTRODUCED BY SENIOR ASSEMBLY MEMBER LOH

(COAUTHOR: SENIOR SENATOR FINGOLD)

LEGISLATIVE COUNSEL'S DIGEST

AFP 6: MEDICARE PART D.

EXISTING LAW, THE MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, AND MODERNIZATION ACT OF 2003, PROHIBITS THE UNITED STATES SECRETARY OF HEALTH AND HUMAN SERVICES FROM NEGOTIATING LOWER DRUG PRICES ON BEHALF OF MEDICARE BENEFICIARIES.

THIS MEASURE WOULD MEMORIALIZE THE CONGRESS AND THE PRESIDENT TO ENACT LEGISLATION THAT WOULD REQUIRE THE FEDERAL GOVERNMENT TO NEGOTIATE FOR THE LOWEST AVAILABLE PRICES FOR PRESCRIPTION DRUGS UNDER THE MEDICARE PART D PROGRAM.

VOTE: MAJORITY.

AFP 6: RELATING TO MEDICARE

WHEREAS, THE FEDERAL GOVERNMENT CREATED THE MEDICARE PART D PRESCRIPTION DRUG PROGRAM AS PART OF THE MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, AND MODERNIZATION ACT OF 2003; AND

WHEREAS, THE MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, AND MODERNIZATION ACT OF 2003 PROHIBITS THE UNITED STATES SECRETARY OF HEALTH AND HUMAN SERVICES FROM NEGOTIATING LOWER DRUG PRICES ON BEHALF OF MEDICARE BENEFICIARIES; AND

WHEREAS, THE MEDICARE PART D PROGRAM RELIES SOLELY UPON NEGOTIATIONS CONDUCTED BY PRIVATE INSURANCE PLANS TO ACHIEVE LOWER DRUG PRICES; AND

WHEREAS, BY CONTRAST, THE DEPARTMENT OF VETERANS AFFAIRS HAS AUTHORITY TO NEGOTIATE PRESCRIPTION DRUG PRICES ON BEHALF OF BENEFICIARIES RECEIVING VETERANS AFFAIRS HEALTH BENEFITS; AND

WHEREAS, THE COST OF PRESCRIPTION DRUGS RISES EVERY YEAR; AND

WHEREAS, LIFE EXTENSION CONDUCTED AN INDEPENDENT INVESTIGATION OF THE COST OF PRESCRIPTION DRUGS AND CONCLUDED THAT DRUG COMPANIES MAKE EXTENSIVE PROFIT; AND

WHEREAS, FOR EXAMPLE, THE COST OF THE INGREDIENTS TO MAKE CELEBREX IS ONLY $0.60; HOWEVER, THE CONSUMER PRICE FOR 100 TABLETS IS $130.27. SIMILARLY, THE COST OF THE ACTIVE INGREDIENTS IN 10 MILLIGRAMS OF CLARITIN IS $0.71; HOWEVER, 100 TABLETS ARE SOLD FOR $215.17; AND

WHEREAS, WHEN SENIORS ARE STRUGGLING TO PAY FOR GROCERIES, MEDICATION, PROPERTY TAXES, AND OTHER LIVING EXPENSES, THEY CANNOT AFFORD TO LIVE INDEPENDENTLY OR WITH DIGNITY AND PRIDE; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR ASSEMBLY AND THE SENIOR SENATE, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2012 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT THE FEDERAL GOVERNMENT BE REQUIRED TO NEGOTIATE FOR THE LOWEST AVAILABLE PRICES FOR PRESCRIPTION DRUGS UNDER THE MEDICARE PART D PROGRAM; AND BE IT FURTHER

RESOLVED, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA RESPECTFULLY MEMORIALIZES THE CONGRESS AND THE PRESIDENT TO ENACT APPROPRIATE LEGISLATION THAT WOULD ADDRESS THE CONCERNS SET FORTH IN THIS MEASURE; AND BE IT FURTHER

RESOLVED, THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE PRESIDENT AND VICE PRESIDENT, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, THE CHAIRPERSONS OF THE HOUSE AND SENATE COMMITTEES ON AGING, AND TO EACH SENATOR AND REPRESENTATIVE FROM CALIFORNIA IN THE CONGRESS OF THE UNITED STATES.

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RN 12 15839