The recent passage of the Medicare Bill by both the houses of US Congress giving senior citizens in the US the benefit of prescription drug under the Medicare is a step to bring in a major reform in the healthcare programme of that country. There has been hardly any major change in the 40-year old government-run Medicare programme although minor changes used to get incorporated. It is not surprising, therefore, almost one-third of senior citizens in the US are not covered by Medicare. And the programme covers only hospitalization and medical treatment bills but not expenses for the purchase of medicine. This is a serious inadequacy of Medicare and the new bill with the strong support of President Bush is expected to substantially modify this healthcare scheme. Two other key changes proposed in the Bill are: 1. To make generic versions of branded drugs easily available in the market. 2. Allow easy importation of pharmaceuticals from Canada and other cheaper sources. There have been frequent complaints of high drug prices in the US as a large number of citizens, not covered under the Medicare, are unable to buy costly branded drugs. High drug prices in the US are already forcing many citizens in the US to import drugs from Canada where the prices are much lower than in the US.

The generics industry plays an important social role in providing low cost life saving drugs to poor people not only in developing countries but also in the US, the largest pharmaceutical market. Even before the introduction of Medicare Bill in the US Congress, state governments like Maine and others are already in the forefront asking drug companies to lower prices of prescription medicines for the benefit of the poor. A new legislation of Maine upheld by the Supreme Court, also empowers Maine to impose price control if the drug prices do not drop in three years. In short, the US government understands the fact that medical costs could be substantially brought down if generic manufacturing is supported and some price control is enforced. This realization and subsequent action by the US government is going to be a big boon for the Indian pharmaceutical industry with its huge potential for generics exports. Considering these ground realities, the US position with regard to TRIPS at the next round of WTO needs to change to cover all major diseases and epidemics for compulsory licensing. And therefore the US government should take more of a humanitarian position rather than a stand dictated by the powerful multinational corporations.