Do you think allowing the federal government to directly negotiate drug prices for Medicare will significantly lower costs? If you said yes, you are wrong.
Why? For two main reasons, first Part D drug prices are already negotiated by the Part D administrators and as the CBO points out, any additional gain would be modest.
Second, the reason other countries (and the VA) can negotiate lower prices is because they LIMIT THE COVERED DRUGS. So, if your doctor prescribes Lipitor for example, you could be required to take a replacement drug by another manufacturer… because it’s cheaper. Currently Medicare is required to pay for all FDA approved drugs.
The USA can save on health care costs just like other countries if we are willing to do what other countries do to achieve those savings. But nobody seems to talk about that side of the equation.