Sen. Franken Reintroduces Measure to Cut Prescription Drug Costs for Seniors, Save Taxpayers Billions of Dollars

WASHINGTON, Feb. 9 -- The office of Sen. Al Franken, D-Minn., issued the following news release:

Senator Al Franken reintroduced his cost-saving measure to help seniors in Minnesota and across the country better afford their medications by allowing Medicare to negotiate lower prices with prescription drug companies.

His bill, the Prescription Drug and Health Improvement Act, will remove barriers that currently prevent Medicare from negotiating with drug companies to bring beneficiaries lower prices. Sen. Franken's bill could save the federal government up to $24 billion annually by allowing Medicare to negotiate lower prices for prescription drugs, similar to the prices paid by Medicaid or the Veterans Health Administration.

"When I held my Prescription Drug Listening Tour in Minnesota last year, one of the most common issues I heard from seniors and health care providers is that prescription drug prices are out of control," said Sen. Franken, a member of the Senate Health Committee. "Minnesotans told me that skyrocketing drug prices are forcing them to make difficult decisions about their daily lives-choosing between paying bills, buying groceries, or taking medications. I've listened to their concerns, and I've introduced legislation that would bring down the cost of prescription drugs for our seniors by allowing Medicare to negotiate better deals with drug manufacturers. This is something that I've been fighting to get done since I joined the Senate, and even President Trump has publicly expressed support for this policy. So I'm hopeful that we can finally pass my commonsense bill into law. It's about time, because this would save taxpayer dollars, keep costs in check, and put more money in the pockets of seniors."

While the Department of Veterans Affairs, Medicaid, and other government programs are able to extract discounts from pharmaceutical corporations, Medicare is currently barred from negotiating drug prices. Sen. Franken's bill would change that, and it's something he's been fighting for since he first joined the Senate.

His legislation--cosponsored by Sens. Jack Reed (D-R.I.) and Sherrod Brown (D-Ohio)--would also direct HHS to prioritize negotiations for high-priced drugs, including those with high launch prices, those that account for high levels of spending and those with dramatic price spikes. Under current law, drug prices are negotiated between pharmaceutical companies and private insurance companies contracted by the government to deliver the drug benefit, thereby preventing HHS from using the leveraging power of the 41 million Medicare Part D beneficiaries to get the best drug prices possible. Researchers have estimated that the federal government could save up to $24 billion annually if it could pay prices similar to those paid by Medicaid or the Veterans Health Administration. More information on the Prescription Drug and Health Improvement Act is available here (https://www.franken.senate.gov/files/documents/170209PrescriptionDrugandHealthImprovementActof2017OnePager.pdf).

Sen. Franken, a strong supporter of seniors, is a leading advocate for cutting prescription drug costs and bringing prices down for Minnesotans. Last year, Sen. Franken and his office held a "Prescription Drug Cost Listening Tour (https://www.franken.senate.gov/?p=press_release&id=3393)" in communities across the state in order to hear concerns from older Americans who have been hit hard by skyrocketing prices of prescription drugs.

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