Congressman Deutch has cosponsored legislation with Sen. Dick Durbin (D-IL) and Rep. Jan Schakowsky (D-IL) that would create one or more Medicare-administered prescription drug plans to compete with the expensive, privately administered prescription drug plans currently offered under Medicare Part D. The bill would require the Secretary of Health and Human Services to negotiate lower drug prices.

The legislation would help protect seniors and individuals with disabilities by providing an alternative to the confusing private prescription drug plans, marketing practices, and formulary changes that have made deciphering among Part D plans very difficult. The prescription plan (or plans) administered by Medicare would not eliminate the private plans that are currently offered but, by providing competition, would put downward pressure on the drug costs in private plans as well.

This legislation has the potential to save taxpayers nearly $20 billion a year. 

Key provisions of the Medicare Prescription Drug Savings and Choice Act:

• The Medicare-operated drug plan(s) would be available nationwide with a uniform monthly premium.
• The Secretary would negotiate with drug companies on the prices of drugs provided through the Medicare-operated drug plan(s).
• The Secretary would be required to create a drug formulary for the Medicare-operated drug plan(s) that promotes safety, appropriate use of drugs, and value.
• The Agency for Healthcare Research and Quality would assess the clinical effectiveness and safety of drugs and recommend drugs that should be included on the formulary. Drugs listed on the formulary could not be removed during the year except in the case of safety concerns; however, drugs with clinical benefits could be added.
• For drugs that provide similar benefits, the formulary would use incentives (such as lower co-payments) to encourage Medicare beneficiaries to choose the drug for which the Secretary of HHS was able to negotiate the lowest price.
• An appeals process would be established that is efficient, imposes minimal administrative burdens, and ensures timely procurement of non-formulary drugs or non-preferred drugs when medically necessary.

The bill is endorsed by the American Public Health Association, Center for Medicare Advocacy, Medicare Rights Center, SEIU, AFSCME, Families USA, Alliance for Retired Americans, National Committee to Preserve Social Security and Medicare, and the American Nurses Association.