Any Fox Network viewer will tell you that the consequences for Democrats taking back the two houses of congress are catastrophic. Partisan fighting would continue, the war on terror would take a massive blow, and the possibility of presidential impeachment would loom. And though each of these concerns are unfounded and almost laughable (do you think the Democrats would impeach President Bush to put Cheney in power?), there will be some major changes that will occur.
The legislation that will be introduced “within five minutes,” as Nancy Pelosi notes, is the proposal to let the government negotiate drug prices. In a country seeded with capitalistic roots, how does the largest purchaser of drugs forfeit negotiating power? The very idea is perplexing. In 2003 when the congress passed a bill banning governmental negotiating, the idea was to let the third party insurance companies use their understanding of the industry to navigate prices. However, what happened next did not surprise the minority party. The drug prices paid by Medicaid/Medicare increased 10% a year since the law went into effect. Even more startling, the Veterans Benefits, which are not part of this legislation, buy their drugs at 50%-60% of the prices Medicare pays, though they purchase a fraction of the volume.
Yes, Big Pharma is worried; and rightfully so. They have already poured $500,000 in to Rick Santorum’s close race (the leading proponent of the 2003 Medicare bill), and multiple others across the country. If the Democrats do impeach President Bush, it will be long after drug prices drop.
(A great article can be found in the Wall Street Journal entitled, “Fearing a Democratic Victory, Drug Makers Fund Key Races.”)