They Did What !

Back in early August I lamented the fact that all of Medicare’s leverage for reducing drug costs was just given away by the legislators when they included, in the prescription coverage bill, a provision that prohibits them from negotiating lower drug prices. Recently, reading the September AARP Bulletin, I discovered that our Homeland Security department is now confiscating prescriptions mailed from Canada. They started the confiscations last November 17.

The difference between the cost of drugs in Canada and the U.S. is considerable. For instance based on a 90 to 100 day supply:

Zocor is $4.63 per pill in the U.S. and $2.02 per pill from Canada
Fosamax is $2.53 per pill in the U.S. and $1.28 from Canada.

These are big savings, especially for the elderly, the most common users of these drugs, many of whom are living on Social Security. When Homeland Security seizes the drugs, they do not get their needed medications, and on top of that they are out the cost of the prescription, something they can ill afford.

Officials, In an attempt to justify their actions, (and no doubt appear noble at the same time), claim the new enforcement policy is intended to protect consumers because the drugs may not be safe. This is the same excuse given for defeating efforts to make importing these drugs legal. This ridiculous claim is made in the face of a 2004 Government Accountability Office study that concluded the composition of drugs from Canadian pharmacies is comparable to drugs bought in the U.S. In the majority of cases, they are made by the same manufacturers.

It is interesting to note that the November 17 start of the confiscations was just 2 days after the deadline (November 15) to sign up for Plan D prescription coverage (to start January 1, 2006). There were reports in the news that the number of sign ups was below expectations. Somehow that sounds like a more plausible explanation for the sudden start of the confiscations doesn’t it – to force people to join Plan D?

Something else mentioned previously was the lost leverage of the Medicaid program because Medicaid people were transferred to Plan D. Since then I have learned that the government is now paying 20% to 30% more for those Medicaid prescriptions and they are doing that with our tax money!

So… let’s see if I have this straight. Our elected officials set it up so they are spending 20% - 30% more of our tax money for Medicaid prescriptions, and agreed not to negotiate for lower prices for Medicare prescriptions. Now wait a minute, what am I missing here? The pharmaceuticals make more money, the politicians get bigger donations from the pharmaceuticals, and we… well we join the program they set up or pay big time for our drugs, or have them confiscated when we try to save on them.

If you would like to rub a little salt into these wounds, look closely at how prescription costs are added up to reach the $2250 which throws us into the “gap� where we pay 100%. That $2250 total includes not just what the insurance pays for our prescriptions, but what we pay as well and if they cover nothing on a prescription then the whole amount, paid by us, adds into our total.

Way to go congress, stick it to them – your constituents – but be sure you don’t cut into the profits of the pharmaceuticals or the insurance companies! For this kind of wonderful “public service� and mismanagement of our tax dollars, you expect us to cheerfully increase your salaries every year and re-elect you when your terms expire.

If we do, we are just plain stupid and deserve exactly what we get!