Cheaper drugs?

On January 12, 2007 the House passed a bill that would demand negotiations, prohibited by the 2003 Medicare law, between the government and drug manufacturers. All of the House Democrats and twenty-four Republicans voted to support this bill. The Democrats believe that the medications that are vital to some people's lives are too expensive and unobtainable to Medicare beneficiaries and want to cut down on the profits the drug companies make in the Medicare market. They think that they would be able to aquire lower prices for the medications if the cost was discussed with the drug companies like the Department of Veterans Affairs does. However, they also mentioned that they did not want Medicare to be able to install a "federal ceiling price" and a national formulary, which is a standardized list of covered drugs. The Republicans said that it would be impossible for the government to limit the access to the drugs. Then, they said the law would restrict the medications reachable by the doctors and patiens. Still, many Republicans believe that the government should just stay away from this issue and let the market work. Up to now, it does not seem as though the bill will become a law the way that it has been proposed, but it can be edited and passed.

In 1965, Medicare was established when the Social Security Ammendments were passed. It is an insurance program to benefit seniors 65 and over. In 1973 it began to cover disabled people as well. Today, it is run by the Centers for Medicare and Medicaid Services.