Much like the Republican's "Contract with America" in 1994, Democrats are eagerly awaiting January 4th so that they can implement their
"100 hours program. Joe Courtney has promised that he will help reform Medicare Part D so that the government will be able to negotiate with drug companies for lower prices.
Courtney and other Democrats have argued that allowing negotiation with drug companies will lower costs for seniors, and eliminate the "donut hole." They have also argued that the VA is able to do the same and their prices are lower (aside from the fact by law they already receive a reduction in prices.) Republicans have countered saying that the program is currently satisfying the needs of a majority of seniors and that negotiation with drug companies is the first step to implementing a single payer government funded health care system.
Both arguments appeal to the worst of both Democrats and Republicans. For Democrats, it's the belief that only the government is able to (and should) take care of the disadvantaged. For Republicans it's the belief that the free market should be the primary system by which services are provided to citizens.
An interesting (and refreshing) argument has been made by Benjamin Zycher. In an
article published in
RealClearPolitics, and in editorials in the Washington Post, he argues that while price negotiation would cause prices to fall, it would also have the effect of reducing the amount spent on R&D by a considerable amount. This decline in R&D spending would result in fewer new and life-saving drugs being invented in the future.
The allure of plans like the 100 Hours agenda is that they can be presented in such simple and stark terms. If Democrats are for lower drug prices, Republicans must be for raising them or at the very least keeping them at the same level. Never mind that Medicare is one of the most complicated government programs and that the ills of the system can not and
should not be fixed in 100 hours.
If Zycher's argument is correct and R&D spending will be decreased, Joe Courtney should propose legislation to offer some type of aid or incentives to drug companies. Considering that Pfizer - one of the largest drug companies - has one of its ten global R&D headquarters based in Groton, he should do it rather quickly. While drug companies have incentive to develop new drugs, they only have that incentive to do so if there is the promise of profit. Otherwise, they'll just continue to manufacture one's they know make money like
Viagra instead of drugs targeting HIV.
However, Courtney has made no indication that he is willing to offer aid or incentives to "Big Pharma." But then again, he does have the next 2 years to propose this type of legislation.