WBBA Says Coverage Is the Answer to
Help Seniors
Meet Prescription Drug Costs
SEATTLE, WA. (June 29, 2000) – Ruth M. Scott, President of the Washington
Biotechnology & Biomedical Association (WBBA), issued the following statement:
"WBBA wants all Washingtonians, especially seniors, to have access to medicines.
The best way to achieve that is through affordable access to private sector drug coverage,
which should include stop-loss benefits to ensure seniors get the medicines they need when
they are sickest and their bills are the highest.
"Measures that would introduce direct or indirect price controls would not only
provide inadequate help to these patients, but would also damage the investment climate
for the biotechnology industry, whose companies are the pioneers in developing new
therapies and cures for age-related illnesses, such as heart disease, various cancers and
Alzheimer’s. Biotechnology depends upon outside investment to support the expensive
research in these areas. Biotechnology and medical device employment is one of the
fastest-growing sectors of the state’s economy, with an increase of 12.6% since 1998
to 15,000 at the end of 1999. Additionally, WBBA’s member companies attract more than
a billion dollars into the state to be used for research and training focused on health
science and environmental-related basic science. We do not want to stifle the current
climate of innovation, as any measure that introduces a form of price controls is certain
to do."
Local biotechnology executive Paul Abrams, CEO of NeoRx Corp. in Seattle, made these
points when he testified June 13 before the U.S. Senate Health, Education, Labor and
Pensions Committee hearing in Washington, D.C. Dr. Abrams urged the senators to support
private-sector drug coverage for seniors.
"Coverage will help seniors more than imposing price controls," Abrams told
the U.S. Senate. "The kind of Insurance coverage we hope for can mean a $10 –
$15 co-payment for a product, as opposed to a 10 – 15 percent discount off a bill of
$3,000 for the same product.
"Besides hurting seniors in their pocketbooks, efforts to implement price controls
have historically hurt our industry. Price control efforts in 1993-94 during the Clinton
healthcare reform debate dried up investment in biotechnology research and slowed drug
development. Current price-control efforts in the House and Senate will have the same
effect if they progress," said Abrams.
Abrams, Scott and others stress that price controls don’t work in a free economy.
A recent report, prepared by Ernst & Young, explains why. Last year, the biotech
industry generated nearly half a million U.S. jobs. By comparison, biotech firms directly
employed more people than all the companies in the toy and sporting goods industry.
"The study found the medical biotech industry in 1999 spent $11
billion on research and development, more than 50 percent of its revenues, which
totaled $20 billion for the year. The industry also paid $10 billion in federal, state and
local taxes," Scott said.
Scott urges state lawmakers to consider two points:
- Increasing seniors’ access to prescription drugs through fiscally responsible,
decentralized, private-sector coverage is the best way to help seniors gain access to
drugs that are safe and affordable. WBBA supports subsidized private sector coverage for
people unable to afford the full cost of prescription drugs.
- Small biotech companies – many of whom are years away from having commercial
sales—are in the forefront of discovering, developing and bringing to market the next
generation of life-saving medicines. Many drugs are targeted at preventing or curing
diseases that affect seniors, highlighting the importance of ensuring seniors’ access
to these medicines and helping them get drug coverage.
WBBA represents more than 260 biotechnology companies, academic institutions, medical
device firms and associate member companies throughout the state of Washington.
For additional information, please contact:
Washington Biotechnology & Biomedical Association
Pam Love, Director of
Communications & Events
1100 Olive Way, Suite 300
Seattle, WA 98101-1839
Phone: 206.624.1967
Fax: 206.628.0899
E-mail: washbio@washbio.org
|
