PhRMA Statement on Mental Health Parity Legislation
"Establishing mental health benefits in line with medical and surgical benefits is a much needed improvement for patients seeking coverage of mental illnesses. This is a laudable goal, and would be an important step forward for patients.
"However, PhRMA and its member companies do not support an unwarranted increase in the Medicaid rebate to pay for the House mental health parity legislation.
“At the same time the Congress is taking an important step forward for patients, a Medicaid rebate increase on the pharmaceutical industry could chill the very advances patients seek to treat their conditions. America’s pharmaceutical research companies currently are developing nearly 200 medicines to treat mental illnesses, such as Alzheimer’s, depression, schizophrenia and anxiety disorders. Millions of patients stand to benefit from these new therapies.
"H.R. 1424 would result in a 33 percent increase in the basic Medicaid rebate. America’s pharmaceutical research companies already pay large rebates that produce significant savings to the Medicaid program and current law requires that pharmaceutical companies pay an additional rebate to Medicaid if their average manufacturer price increases faster than inflation.
"In addition, Congress just made changes to the rebate formula in the Deficit Reduction Act of 2005, which increased the rebate obligations for some pharmaceutical manufacturers.
“We do not believe that increasing this rebate tax is an appropriate way to pay for other discretionary programs.”
The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading pharmaceutical research and biotechnology companies, which are devoted to inventing medicines that allow patients to live longer, healthier, and more productive lives. PhRMA companies are leading the way in the search for new cures. PhRMA members alone invested an estimated $43 billion in 2006 in discovering and developing new medicines. Industry-wide research and investment reached a record $55.2 billion in 2006.
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PhRMA Internet Address: http://www.phrma.org/
For information on stories of hope and survival, visit: http://sharingmiracles.com
For information on how innovative medicines save lives, visit: http://www.innovation.org/
For information on the Partnership for Prescription Assistance, visit: http://www.pparx.org/
For information on the dangers of imported drugs, visit: http://www.buysafedrugs.info/
Contact: Karl Uhlendorf (202) 835-3460
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