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03/04/2004 Entry: "Feingold Introduces Budget Amendments Aimed at Saving Taxpayers and Medicare"

Both Amendments are Based on Legislation Feingold Introduced Last Year

Washington, D.C. – U.S. Senator Russ Feingold introduced two amendments today that would save taxpayers and the Medicare program millions of dollars. The first amendment eliminates almost $4 billion of the "slush fund" for HMOs and PPOs included in the Medicare prescription drug bill that passed last year.

Under the new law, the Secretary of Health and Human Services has the power to dip into the multi-billion dollar fund and send money to HMOs and PPOs that wish to expand their operations, or that are having trouble staying in business. Feingold's other amendment would allow Medicare to negotiate lower drug costs for seniors in Medicare. The recently passed Medicare bill includes provisions that prevent the government from negotiating lower prescription drug costs with the drug companies. If the government could negotiate drug prices, lower costs would save seniors and taxpayers millions.

"We should not ask taxpayers to subsidize HMOs and PPOs. The multi-billion dollar fund established under the Medicare program is available only for the care and well-being of the HMOs and does nothing for the folks who rely on Medicare," Feingold said. "The other amendment I introduced simply strikes the
provisions in the recently enacted Medicare bill that allow drug companies to charge Medicare whatever they want for prescription drugs. It provides Medicare with the ability to negotiate lower prescription drug prices with companies."

The new Medicare program allows private insurance companies to negotiateprescription drug prices with pharmaceutical companies, without allowing Medicare to be involved. Because of this, the private companies who negotiate are able to take advantage of any rebates and cost savings offered by the drug companies, and these pharmaceutical companies can set prices at whatever levels
they choose.

"We must not let the drug companies, the HMOs and PPOs get rich off of the American taxpayer, our seniors, and others in need," Feingold said.

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