Healthcare

Negotiating Medicare drug prices

During the recent campaign Trump said allowing HHS to negotiate prescription drug prices could save $300 billion. That’s quite an achievement from a program that spends about $100 billion a year.

Humm, let me see if I have this right?

Humm, let me see if I have this right?

The fact is that the CBO and the Office of Management and Budget have both said that negotiating drug prices would have negligible effect on costs because HHS has little leverage plus these prices are already negotiated by the pharmacy benefit managers running Part D of Medicare.

For HHS to significantly impact costs it would have to simply set prices and pay no more or eliminate certain high cost drugs from coverage (as they do in other single-payer systems in other countries.)

Both of these moves have consequences for Medicare beneficiaries and for the US population as a whole.

So, as you hear the claims coming at you about changing Part D of Medicare, better get all the facts and think about the consequences. 

Advertisements

3 replies »

  1. For example, Ida Mae Fuller, the first beneficiary, paid in less than $25 over less than three years and received $22,888 in benefits over her retirement years. It was crap like that which levied the burdens current and future workers face when congress and Bysh and Reagan and Roosevelt are out there buying votes today and saddling future workers with the costs. The time to stop is now, TODAY.!

    Like

  2. You are correct about government negotiations on self administered drug prices eliminating access to the best drugs for the people who need them in other countries with single payer systems. But you don’t have to go that far away; that’s exactly what happens in the VA system and for people on Medicaid.

    Like

What's your opinion on this post? Readers would like your point of view.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s