First, pharmacy benefit managers operating Part D of Medicare already negotiate drug prices and do so by leveraging formularies. I will give you a better price if you make it more desirable for patients to use the drug I make among alternatives in the same class of drugs.
Will Medicare get a better deal, How? Stricter formularies? How much can actually be saved? Or, is “negotiate” a misnomer and are we really talking about setting prices? If so, what are possible consequences?
Then instead of capturing all projected savings, politicians want to use assumed savings to create yet another ongoing, growing liability in the form of additional coverage. There is no guarantee savings will continue to cover the cost of coverage for dental care, hearing, and vision.
And, there is no way of substantiating the savings in future years.
House Democrats on Thursday pushed through legislation that would empower Medicare to negotiate prescription drug prices and offer new benefits for seniors. The vote comes as the House Judiciary Committee considers articles of impeachment against the president.
The bill would cap Medicare recipients’ out-of-pocket costs for medicines at $2,000 a year. It would use about $360 billion of its projected 10-year savings from lower drug costs to establish Medicare coverage for dental care, hearing, and vision, filling major gaps for seniors. Source: CBS News