Ensuring that patients have access to appropriate new medicines can help to contain overall Medicare spending.

Less than half of America’s Hispanic/Latino populations have private health insurance. In 2004, one third of Hispanic or Latino Americans lacked any health insurance compared to 10 percent of whites and 16 percent of blacks. Hispanic or Latino Americans are also twice as likely as whites to rely on Medicaid for health insurance benefits. Consequently America’s Hispanic/Latino populations are disproportionately impacted when benefits offered through Medicaid programs are eliminated, reduced or restricted.

According to the Department of Labor’s Bureau of Labor Statistics, for the 12 months ending December 31, 2004 the Consumer Price Index (CPI) increased by 3.3 percent led by a 16.6 percent increase in energy costs. During this period medical care costs rose 4.2 percent.

A recent poll by the Kaiser Family Foundation reveals that 80 percent of respondents believe that prescription drugs have a positive impact on the lives of Americans, yet nearly 60 percent also believe that prescription drugs increase overall health costs and 24 percent believe that drug company profits are the most important factor in rising health care costs.

The Medicare Modernization Act passed by Congress in 2003 instructed the Secretary of Commerce to conduct a study on OECD drug price controls and the implications for US consumers. The US Department of Commerce, International Trade Administration released the results of its study December 2004.