New Medicare Drug Plan could impact VA health care

[Gimpy]

Just got through reading in my latest edition of the bi-monthly MOPH magazine where the Legislative Director of the MOPH commented on a proposal still being considered in Congress (and evidently driven as well by the Whitehouse) that could have a negative impact on disabled Veterans health care & drug costs.


Some lawmakers in Congress have tried to draw analogies between the Medicare prescription drug program and the Veterans Affairs (VA) pharmacy system, arguing that the Medicare program should adopt the VA drug-pricing structure because it would result in lower drug prices for beneficiaries. They are sadly mistaken, and are apparently attempting to undermine the current method used by the VA to negotiate with drug companies which have established a great cost savings for the VA and an obvious lack of 'profits' by the drug manufacturers.


This is simply another way to allow this procedure to be undermined and altered in a manner by which the drug companies can increase their chances at recouping the losses they've incurred in the past by having to deal with the VA under the guidelines established years ago.


The VA pharmacy benefit is based on a federal procurement model, allowing the veterans health system to enter into agreements with certain drug manufacturers as a way to reduce prices for our nation?s veterans served by the program. For instance, manufacturers that sell brandname drugs listed on the Federal Supply Schedule (FSS) must offer the VA a price that is at least 24-percent lower than the non-federal average manufacturer price. In addition, the VA is authorized to enter into multi-year contracts for other select drugs, resulting in a price that is even lower than the FSS discounted rate.



The VA?s pharmacy program serves a relatively small population of approximately 4.5 million veterans ? a group which represents just 1 percent of total drug spending nationwide. As a result, potential profit loss among pharmaceutical manufacturers is limited.


Currently the VA has a "National Contract Price": Which is the price the VA has obtained though competitive bids from manufacturers for select drugs in exchange for their inclusion on the VA formulary. Because the VA is entitled to FCP prices under federal statute, VA national contract prices are even lower than FCP prices and are often the lowest prices in the nation.



However, if the Medicare program were to implement a pricing system similar to the VA?s, then the potential for market distortion would be much greater. The Medicare program currently covers 41 million seniors and disabled individuals ? a group which represents 14 percent of the total population but 40 percent of total U.S. drug consumption.


It is therefore easy to conclude that manufacturers would respond almost immediately with price increases not ONLY throughout the private sector, but ALSO in their 'negotiations' with the Federal Government programs to INCLUDE the VA as a way to prevent profit erosion.


Which in turn, would not only also raise private health insurance rates for non-Medicare beneficiaries, and furthermore, create only temporary price reductions forMedicare since the federal supply rate is based on a manufacturer?s ?most-favored? rate in theprivate sector. Which would inevitably cause not only current VA prescription drug co-pay charges to increase but also directly impact the overall health care costs associated with veterans outpatient and inpatient hospital care subsequently causing an even more pronounced difficulty in providing cost efficient and timely, professional health care to this nations veterans.


Can this be another sinister 'plan' to ultimately 'privatize' the VA system of health care and obviously a way to further the obvious 'goals' of the large drug manufacturers in their continued efforts to rape the American people (now to include this nations sick and disabled Veterans) with their outlandish profit margins?????


You tell me.


I know I'm writing MY Congressman and Senators with my outrage that this proposal is even being considered. And, I hope and pray more of us will do likewise!


Sincerely,


One "PISSED-OFF" Gimpy-legged Southern Traditionalist who is FED UP!..................

[catman]

It never ends does it Steve? The bastards will find one way or another to stick it to us. When you have drafted that letter, send me a copy, I would be more than glad to forward it to my officials also! I do not have a gifted pen like you do, my writing is not nearly as eloquent!

shootthewind@yahoo.com

Trav

[Gimpy]

Trav.................I'll send you a copy when I finish writing mine.

We gotta stop this crap before it gets started!.............