If it ain't broke, don't fix it?
One of the pharm policy issues I've been trying to follow closely is the attempt to amend Medicare Part D to allow the US government to negotiate drug prices. When this legislation was being debated in Congress, this was a point under much contention. Our government funds a lot of the research it takes to develop drugs, why shouldn't it be able to tell the drug companies what they would pay? The US Department of Veterans Affairs does it, saving veterans and taxpayers money. The legislation was passed without granting the government to do this for seniors. In the past, AMSA supported S. 18 "Meeting Our Responsibility to Medicare Beneficiaries Act of 2005," but that's been stuck in committee since Jan. 2005.
Earlier this week, a Washington Post article noted that the success of the drug benefit may make it harder for the Democrats, soon to dominate Congress, to alter the legislation. Apparently, recent polls show that about 80% of Medicare Part D beneficiaries are satisfied with their plans, and that the cost of the program has been lower than expected. Will the Democrats be able to make changes? There does not appear to be a clear strategy yet just ideas about developing a government-run plan that negotiates drug prices and competes directly with private drug plans or price ceiling. This will be something interesting to watch as the Democrats take control.
May
Pharmaceutical Policy Coordinator
posted by May @ 11/29/2006 10:38:00 PM
3 comments
3 Comments:
An interesting issue I heard on the radio the other day: Even if they can manage to pass legislation to allow bargaining with drug companies, it would be hard to mandate it. If HHS doesn't want to negotiate, then how will this legislation help?
I'm all in favor of this legislation, but I don't know what it will do if the administration still refuses to negotiate drug prices.
One important counterpoint is that legislation lasts much longer than administrations. Even if *this* administration refuses to negotiate, leaving the door open for future ones is just as important.
That's frustrating, Lenny. It reminds me of what's going on with that Taco Bell-onion-E. coli outbreak. Some major industry produce groups are asking for government regulation, but even the FDA realizes that they are understaffed and don't have the resources to enforce regulations.
More discussion on this here:
http://www.kaisernetwork.org/daily_reports/rep_index.cfm?DR_ID=41533
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