On the other side is the pharmaceutical industry, which fears the government will force deep discounts in their prices. The pharmaceutical industry has invested heavily in influencing the debate. With final reports not yet in, the industry's campaign contributions have jumped 53 percent over the last midterm election cycle, reports the Center for Responsive Politics. Of the ten members of the Congress appointed to the 17-member commission, four rank in the top ten overall among recipients of drug industry campaign contributions. A lot is at stake.
Drugs keep people healthier and out of hospitals.
But U.S. pharmaceuticals do not want the government buying their products on behalf of America's seniors. They fear price controls, or the likelihood that such a large buyer could demand deep discounts. Currently, drug manufacturers negotiate lower prices with large customers like health insurers, managed care organizations, the Veterans' Administration and state Medicaid programs, but these savings do not extend to most Medicare beneficiaries. Pharmaceutical companies make huge profits on their drug sales here. For example, a September 1998 study by Public Citizen's Health Research Group comparing the cost of eight leading antipsychotics and antidepressants in the U.S. and seventeen other countries in North America and Europe found that Americans pay anywhere from 1.7 to 2.9 as much for their medication.