Reducing the Costs and Expanding the Coverage of Prescription Drugs for Seniors

Resolution Adopted By the Standing Committee on Health and Human Services and Approved by the Executive Committee at The U.S. Conference of Mayors 68th Winter Meeting, January 2000

WHEREAS, in 1999 the prices of the 50 most prescribed drugs for older Americans increased faster than the rate of inflation, continuing the previous year’s trend when prices increased four times the inflation rate; and

WHEREAS, in 1999 profits have soared for pharmaceutical companies, with the median profits for the manufacturers of the most popular medications growing at a rate many times the median profit for all Fortune 500 companies; and

WHEREAS, older Americans fill over 18 prescriptions per year and almost half of all Medicare recipients have an income less than $15,000 a year; and

WHEREAS, many senior citizens on Medicare who were enrolled in HMOs this year lost their access to drug coverage as the HMOs eliminated medications as a covered option for Medicare recipients; and

WHEREAS, an estimated 15% of Americans do not have health care insurance and therefore must pay for their medications entirely out-of-pocket, as do millions of other Americans who have health insurance but no drug coverage; and

WHEREAS, it is anticipated that the Congress and the Administration will be examining solutions to these problems at the start of the 2nd session of the 106th Congress and the U. S. Conference of Mayors wants to insure that these deliberations occur with the input and expertise of mayors,

NOW, THEREFORE, BE IT RESOLVED that the United States Conference of Mayors calls upon Congress to expand Medicare to include full prescription drug coverage for all beneficiaries; and

BE IT FURTHER RESOLVED that the United States Conference of Mayors calls upon Congress to hold a series of special hearings in several American cities including Washington D.C. - focused on the impact of excessive pricing in the pharmaceutical industry; and

BE IT FURTHER RESOLVED that the United States Conference of Mayors calls upon Congress and/or the President to establish a non-partisan task force to explore mechanisms for price regulation of the pharmaceutical industry and make recommendations as appropriate; and

BE IT FURTHER RESOLVED that the United States Conference of Mayors calls upon the Administration and Congress to consider a “windfall” profits charge against pharmaceutical companies, with the funds so generated going towards support of prescription drug coverage for elders; and

BE IT FURTHER RESOLVED that the United States Conference of Mayors calls upon the U.S. Conference of Mayors to identify locally-based solutions to excessive drug costs that could be applied nationally, including approaches to the bulk purchasing of drugs at reduced prices, and to issue a written report of its findings by June 1, 2000; and

BE IT FURTHER RESOLVED that the United States Conference of Mayors calls upon the Administration to meet with a delegation of the U.S. Conference of Mayors to discuss the locally based approaches and other solutions to the problem.