Resolution
Adopted by the CCAR
PRESCRIPTION DRUGS
Adopted by the 114th Annual Convention
of the Central Conference
of American Rabbis
Omni Shoreham, Washington D.C.
March,
2003
Background
For the
millions of uninsured and underinsured Americans, and for those
Americans on Medicare, the high cost of prescription drugs presents a
formidable hurdle in access to health care. The Union of American
Hebrew Congregations’ 1975 resolution calling for universal access to
health insurance has been the foundation of our efforts to improve the
American health care system. Now, as prescription drugs essential to
health and wellness are increasing so dramatically in cost, we add to
our original mandate and call for the inclusion of prescription drug
coverage in all health plans and the increased availability of more
affordable generic drugs.
Since
1995, national spending on prescription drugs has grown by over 10%
per year. Seniors account for only 13% of the population, but for 34%
of all prescriptions dispensed and 42% of prescription drug spending.
Many elderly and disabled people live on fixed incomes and for them,
medication prices have become increasingly unaffordable. This
problem is compounded by the fact that Medicare does not provide any
prescription drug coverage, except when medication is administered in
the hospital. 47% of seniors lack prescription drug coverage at some
point during the year and with estimated average cost of medication at
$1,525 per Medicare enrollee in 2000, this represents a significant
cost burden.
According to
pharmaceutical companies, the high cost of prescription drugs,
particularly newer medications, is attributable to the high cost of
research and development (R&D). On the other hand, public interest
groups such as Families USA and Public Citizen point to the high
profitability of drug companies as an incentive for higher drug
prices. For each of the past ten years, pharmaceutical companies have
been the most profitable industry in the U.S. and in 2001 were 5 =
times more profitable than the average Fortune 500 Company.
Increased use of generic
drugs is often cited as a potential solution to the drug availability
crisis. For the past several years, about 45% of prescriptions were
filled with generic drugs, but only 8% of all money spent on
prescription drugs was spent on generics. In 2001, the average price
of a generic drug was $16.85, while the average price of a brand name
drug was $72.
The patent
laws governing release of generic drugs are a source of great
controversy. Brand-name drug companies claim that the laws encourage
generic companies to challenge innovator patents soon after their
original release, not allowing sufficient time for brand-name
companies to recoup their research costs. Generic drug companies
claim that brand-name pharmaceutical companies employ underhanded
tactics to postpone the release of generic drugs, to enhance their own
profitability.
With the
availability of health care to all Americans as our goal, we recognize
the need for brand-name drug companies to be profitable, in order that
they may invest in research and development. We also recognize that
generic medications represent an affordable option and their enhanced
availability will open up access to drug treatments.
THEREFORE, the Central Conference of
American Rabbis resolves to:
guaranteed comprehensive, out-patient prescription drug benefit in
Medicare with provision for modest premiums and protection for low-
income seniors and disabled;
increase availability of generic drugs including both the review of
existing patent laws to assure that they provide for the timely
introduction of generic drugs to the marketplace and the altering of
existing patent laws to the extent that they unnecessarily delay the
release of generic medications. We also acknowledge the importance of
intellectual property rights and the need for the pharmaceutical
industry to support its research and development.
examination of current drug distribution and commercialization to
enhance availability of appropriate and less costly medications,
keeping in mind that people’s enhanced health is the highest value.