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Government Affairs Home > Washington Highlights > July 19, 2002

Senate Debates Prescription Drug Measure; Medicare Provider Amendment May Be Offered

July 19, 2002 - The Senate July 15 began what could be a two-week debate on prescription drug legislation. The "Greater Access to Affordable Pharmaceuticals Act of 2002" (S. 812), which was passed by the Senate Health Education Labor and Pensions Committee July 11, amends the federal Food, Drug, and Cosmetic Act to provide greater access to affordable pharmaceuticals through increased access to generics. The bill is being used as a base legislative vehicle for Senators to offer competing amendments to expand the prescription drug benefit under Medicare. Amendments to increase Medicare provider payments for hospitals, physicians and other providers may be offered as well.

At press time, no provider amendment had yet been offered, as much of the focus has been on issues surrounding allowing pharmacists and wholesalers to re-import prescriptions drug from Canada. A number of Senators reportedly have been working on provider related amendments, including Senate Majority Leader Tom Daschle (D-S.D.), Finance Committee Chair Max Baucus (D-Mont.), Sen. Tim Johnson (D-S.D.), Sen. James Jeffords (I-Vt.) and Sen. Bob Graham (D-Fla.).

The AAMC is encouraging that any provider amendment offered include preserving the Medicare Indirect Medical Education (IME) payment at 6.5 percent for at least five years.

Lynne Davis Boyle, Assistant Vice President
AAMC Office of Governmental Relations
ldavisboyle@aamc.org
(202) 828-0526

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