Democrats' drug price bill blocked in Senate

By Richard Cowan

WASHINGTON (Reuters) - A bill that would let the U.S. government negotiate prices for Medicare prescription drugs stalled in the U.S. Senate on Wednesday when Republican opponents blocked a vote on the legislation.

Senate Majority Leader Harry Reid fell five votes short of the 60 needed to end a Republican filibuster and move to a vote on the bill. A filibuster is a tactic for delaying or obstructing legislation by making long speeches.

Democrats said they were not giving up on the bill and would try again.

Medicare, a government-run health insurance program covering 40 million elderly and disabled Americans, is currently barred from negotiating drug prices with drug manufacturers.

Democrats say government negotiations would save money both for the federal budget and for older Americans by getting the lowest drug prices possible. They note that the Department of Veterans Affairs is allowed to negotiate and gets cheaper prices for some drugs than Medicare programs.

But many Republicans and drugmakers say such a move would limit patient choices and do little to trim prices. Medicare officials also say drug coverage is working fine now and is costing less than expected.

Jon Kyl, an Arizona Republican who has a leadership position in the Senate and serves on the committee that has oversight on Medicare, told reporters that lawmakers "chose access over restriction" in the Medicare drug program.

"Do you want legislation passed that bankrupts drug companies?" Kyl said, arguing that the measure could have discouraged pharmaceutical makers from developing new drugs.