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 the CBO points out that 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.

Boy, is this the wrong prescription
Boy, is this the wrong prescription

So, if your doctor prescribes Lipitor for example, you would 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. Rather than tell you the truth, politicians take the easy way out with promises focused on extracting an allusive “more” from a third-party.

If you want to lower costs, modify Medicare so that when it comes to drugs it operates just like the VA.

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, least of all the most outspoken politicians like Bernie Sanders. 


  1. I just refilled my blood pressure medication at Wal-Mart, $4 no insurance. If I use my Tricare insurance the co-pay would of been $10. I believe the government and insurance companies will save me money, when pigs fly. A recent surgery on my had cost me $1,600 out of pocket my Tricare insurance paid $3,000. When i retired I was told Tricare would pay 75% and I would pay 25%. The math just never adds up in my favor. I am sure when the government is finished with the next round of healthcare reform, we will all pay much more. Or pay the same and really get less and less.


  2. Well, to lower prices, you have to first conclude one of four things:
    Excessive profits,
    Available efficiencies,
    Shift costs to other consumers (working stiffs) or, indirectly to taxpayers (grants (e.g. Solyndra, etc.), tax subsidies, etc., or
    My favorite, a minimal sales tax to be paid on our Rx exports to other countries – so they share the burdens (taxing the French)

    Unfortunately, taxing others will lead to counterfeits … and manufacturing by multinationals in non US locations.

    All else is simply price fixing.

    That said, if not taking the Rx end up in say heart surgery, the total cost for Rx treatment looks pretty modest.


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