BANGOR – Congressional contender Mike Michaud on Thursday outlined a national prescription drug plan similar to the court-challenged Maine Rx law.

“It is an outrage that we are the only industrialized country that does not negotiate for lower prescription drugs,” said the East Millinocket Democrat vying for Maine’s 2nd Congressional District seat. “It is a crying shame that seniors have to go to Canada to get the medicines they need at a price they can afford.”

At his Thursday news conference at the Bangor House, Michaud said he would introduce the “America Rx” legislation on his first day in office.

Like Maine’s first-in-the-nation law – of which Michaud, the Senate president pro tempore, was one of several co-sponsors – the federal version would allow the government to negotiate with drug companies for lower prescription drug costs.

Last week, Bush administration attorneys voiced their opposition to the Maine law, the constitutionality of which is being challenged by the pharmaceutical industry in the U.S. Supreme Court.

Michaud’s Republican opponent, Kevin Raye, has said that he would want to study the effects of the Maine Rx law before adopting similar legislation on the federal level.

The two are locked in one of a dozen or so tossup House races in the country as they look to fill the open seat vacated by U.S. Rep. John Baldacci, who is running for governor.

Michaud’s plan also called for a prescription drug benefit under Medicare. Under the voluntary plan, seniors would pay 20 percent of the costs for prescription drugs with Medicare covering the remaining 80 percent. Low-income seniors would pay on a sliding scale based on their income.

While the proposal would cost roughly $800 billion over 10 years, Michaud said those costs could be cut to about $528 billion, if the federal government could bargain for lower prices under the America Rx program.

Michaud said he would pay for the program by redirecting some of the Bush administration’s income tax cut to health care tax credits.

Raye, a former chief of staff to U.S. Sen. Olympia Snowe, released his health care plan last month. The GOP nominee also supported a prescription drug benefit for the elderly, but preferred a “tripartisan” approach backed by Snowe.

The “tripartisan” bill failed in the U.S. Senate before the August recess, falling nine votes short of the 60 needed. That plan, with an estimated cost of $370 billion, would have created a government subsidy to cover the cost of policies created for seniors by private insurance companies.

The two candidates did agree on limiting television advertising of prescription drugs in an effort to hold down costs.

Raye aides on Thursday, however, said their candidate had a better handle on the problem, also targeting print advertising.

“It’s good to see that Michaud agrees with Kevin’s concern about pharmaceutical advertising,” said Raye campaign manager Kathie Summers.