PhRMA Statement on Kaiser Family Foundation Survey

Washington, D.C. (December 8, 2006) — Pharmaceutical Research and Manufacturers of America Senior Vice President Ken Johnson issued the following statement today on the findings of a survey conducted by the Kaiser Family Foundation/Harvard School of Public Health:

“It is difficult to believe that the Kaiser Family Foundation (KFF) would advocate changing the Medicare prescription drug program when, according to the Foundation’s own survey results, less than half a percent of participants regarded Medicare Part D as a top issue in the recent mid-term elections or as a top issue to act on during the next Congress. These findings are consistent with other recent polls in which voters ranked prescription drug coverage near the bottom of their list of voting priorities.

“The data also is mystifying when several independent surveys over the past year – including two conducted by the Foundation itself in April and July – show that nearly eight in 10 seniors are satisfied with their Part D prescription drug plan. In the current survey, over half of those polled – and an even higher percentage of respondents who were of Medicare-eligible age – say the benefit is working well or could be improved with minor changes.

“Why? Because more than 38 million seniors and other beneficiaries now have comprehensive prescription drug coverage to help them access life-saving medicines so that they can live longer, healthier lives. Seniors are satisfied with their new coverage and are experiencing significant savings. According to the Centers for Medicare and Medicaid Services (CMS), seniors are saving, on average, $1,200 a year.

“However, despite the clear success of the program and the nominal public support for legislative intervention, the Kaiser Family Foundation dedicated a significant portion of its survey to proposed changes to Part D – particularly in support of government ‘negotiation’ of drug prices.

“Governments do not negotiate prices, they dictate them – and with severe consequences. In Canada, Australia and any other country with government-controlled drug prices, patient choice disappears.

“Negotiations in the private sector already are occurring between prescription drug plans, several of which already purchase medicines on behalf of tens of million of Americans, and pharmaceutical companies. That’s the marketplace in action and that’s how America’s seniors will see true savings without compromising the search for future cures.

“America’s pharmaceutical research companies believe the government and private sector should focus on practical steps that can make the program work even better for patients, such as signing up more low-income seniors and offering more plans that fill the coverage gap. However, new restrictive policies that undermine Part D’s success – especially those that would not expand access to needed medicines nor save money for beneficiaries and taxpayers – are not in the best interest of American patients.

“The Kaiser respondents also are confused regarding the impact of federally ‘negotiated’ drug prices on research & development investment by America’s pharmaceutical research companies.

“Government price-setting would greatly affect R&D. A recent study by the Manhattan Institute predicted that if ‘negotiation’ were implemented, new drug R&D would decline by approximately $10 billion a year, 196 new medicines would be lost between 2007 and 2025, and the reduced flow in new and improved medicines would cost Americans about five million life-years annually.

“Finally, it is important to stress that the Food and Drug Administration and the Surgeon General have warned repeatedly that importing medicines from other countries – including Canada – can be dangerous to patient health.

“However, there is a safe and legal option for people who need help obtaining their medicines. America’s pharmaceutical research companies are working hard to help the uninsured, underinsured and the working poor through programs like the Partnership for Prescription Assistance (1-888-4-PPA-NOW, www.pparx.org). This program provides people in need with a single point of access to more than 475 different programs that offer free or nearly free prescription medicines. So far, over 3.1 million Americans have been helped.”

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The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading pharmaceutical research and biotechnology companies, which are devoted to inventing medicines that allow patients to live longer, healthier, and more productive lives. PhRMA companies are leading the way in the search for new cures. PhRMA members alone invested an estimated $39.4 billion in 2005 in discovering and developing new medicines. Industry wide research and investment reached a record $51.3 billion in 2005.

PhRMA Internet Address: www.phrma.org

PhRMA en Español: www.nuestraphrma.org

For information on how innovative medicines save lives, visit: www.innovation.org

For information on the Partnership for Prescription Assistance, visit: www.pparx.org

For information on the danger of imported drugs, visit: www.buysafedrugs.info