The National Association of Manufacturers Urges Senators to Oppose S3 “Medicare Fair Prescription Drug Price” Act

The move would reduce choice, NAM argued. Here, a copy of the letter they sent to each Senator this morning: April 17, 2007 Dear Senators: On behalf of the National Association of Manufacturers (NAM), the nation's largest industrial trade association and the voice of more than 100,000 small, medium and large manufacturers in every industrial sector and in all 50 states, I urge you to oppose S. 3 , the Medicare Fair Prescription Drug Price Act of 2007. S. 3 would lift the restrictions that currently prohibit the Secretary of Health and Human Services from negotiating drug prices with pharmaceutical manufacturers on behalf of Medicare beneficiaries. The 2003 Medicare Prescription Drug and Modernization Act (MMA) called for reform through private plan options that rely on competition to drive down costs - a concept the NAM and its members have long embraced. Private sector negotiations between insurers and manufacturers since passage of the MMA have steadily driven down Part D premiums from $32 to $24. Retirees appear to be very pleased with the current system. A compelling case has not been made to overhaul a process that appears to be working. Conversely, allowing the government to negotiate one-size-fits-all solutions could result in higher prices for seniors and our retirees, reduce the array of available drugs and reduce funding for research and development of new drugs that can benefit those who are ill. The NAM's Key Vote Advisory Committee has indicated that votes on S. 3, including potential votes on cloture and on amendments, merit designation as Key Manufacturing Votes in the 110th Congress. Thank you for your consideration. Sincerely, Jay Timmons Senior Vice President for Policy and Government Relations