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OPINION
Editorials and Debates

Leave Part D be: Opposing view

John J. Castellani
We need widespread access and affordability in Part D.

It is universally agreed that we need sustainable solutions to containing America's rising health care costs. However, in our search for solutions, we cannot jump to purported quick fixes that would actually undermine patient health, such as proposals to allow the government to negotiate prices in Medicare Part D.

The Congressional Budget Office has repeatedly stated that allowing the government to negotiate prices in Part D would have a negligible impact on federal spending unless Health and Human Services limits access to medicines. Restricting access to medicines would not only fail to contain health care costs, it could also increase the need for other, more expensive health care services while jeopardizing patient health.

Part D plans already negotiate significant discounts and rebates on medicines for patients, which is a key factor of the program's success. Even CBO has found that Part D plans have "secured rebates somewhat larger than the average rebates observed in commercial health plans" — often as high as 20% to 30%, according to the Medicare trustees.

Part D has a strong track record thanks to its competitive structure, which provides choice, access and affordability. Congressional Budget Office data show that total costs for Part D are now estimated to be 45% ($348 billion) lower than projections for the initial 2004-13 forecast period.

Surveys show 90% or more of Part D enrollees are satisfied with their coverage and say it works well. The use of medicines under Part D also helps to reduce spending on other health care services in Medicare, a fact that was recently acknowledged by CBO.

Only a small share of overall spending, medicines yield remarkable return — helping patients live healthier lives, and helping reduce more costly health care services. For the millions of Americans waiting on the promise of hope becoming cures, we need widespread access and affordability in Part D. Government price controls are not a solution.

John J. Castellani is president and CEO of PhRMA, the Pharmaceutical and Research Manufacturers of America.

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