In order to make Medicare drug price negotiation a reality, the government has to have additional leverage to negotiate that it doesn't have, explained Ed F. Haislmaier, the Preston A. Wells Jr senior research fellow at the Institute for Family Community, and Opportunity at The Heritage Foundation.
In order to make Medicare drug price negotiation a reality, the government has to have additional leverage to negotiate that it doesn't have, explained Ed F. Haislmaier, the Preston A. Wells Jr senior research fellow at the Institute for Family Community, and Opportunity at The Heritage Foundation.
Transcript
With President Donald Trump focusing more on drug costs and patients feeling a greater burden from them, do you think drug price negotiation with Medicare can become a reality?
The problem with drug price negotiation proposals, is that if you want to get a lower price than you’re getting today, you have to have an "or else" from the pharmaceutical companies. And the "or elses", the alternatives, are 1) give us a lower price or we won’t let the patients get your drug, or 2) give us the lower price or we will take away your property rights, your patents. Neither of those "or elses" are particularly attractive.
So, what that means as a practical matter is members of Congress can put bills in for drug price negotiation, but unless they’re willing to take the politically unpopular stand of not letting seniors have drugs if the company doesn’t play ball, or taking away property rights, then the Congressional Budget Office is gonna score them a zero. The private sector already has leverage to negotiate. The government doesn’t have any additional leverage the private sector doesn’t have except the ability to deny the drug to the patient or the ability to take away their property rights.
CMS Medicare Final Rule: Advancing Benefits, Competition, and Consumer Protection
May 7th 2024On this episode of Managed Care Cast, we're talking with Karen Iapoce, senior director of government products and programs at ZeOmega, about the recent CMS final rule on Medicare Part D and Medicare Advantage.
Listen
After the ACA Expanded Health Care Access, 2024 Elections May See Voters Demand Affordability
May 15th 2024At the spring conference of the New Jersey Health Care Quality Institute, speakers discussed how health policy, affordability, and transparency may play a role in voters’ decisions.
Read More
Panel Addresses Minority Physician Shortage, Maternal Health at Senate Committee Hearing
May 15th 2024The senate hearing held by the US Senate Committee on Health, Education, Labor, and Pensions, led by Sen. Bernie Sanders (I, Vermont), chairman of the committee, and ranking member Sen. Bill Cassidy, MD, (R, Louisiana), addressed the critical issue of physician and health care worker shortages, as well as the maternal health crisis, in the US.
Read More