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Jan
15

Will we or won’t we negotiate drug prices?

The outcome of the “can we or can’t we negotiate with drug manufacturers?” discussion is becoming clearer, as political realities appear to be saying “we can in some limited circumstances.”


The key is in the Senate, where Finance Committee Chair Max Baucus will not support the House’s drug price negotiation bill; without his support the House initiative is dead.
But Baucus and ally Chuck Grassley appear to be interested in writing a bill that would require/allow CMS to negotiate pricing for sole-source brand drugs – the medicines that are unique and thus can bring hefty prices. Good idea, but it’s really tough to see how that could be done.
But if it could, the savings might be significant. In a letter to Sen Ron Wyden (D OR), Congressional Budget Office Director Douglas Holtz-Eakin said “Giving the Secretary an additional tool–the authority to negotiate prices with manufacturers of such drugs–would put greater pressure on those manufacturers and could produce some additional savings.” (letter provided by Sen. Wyden’s staff)
While not a ringing endorsement, this is quite a bit more positive than the CBO’s previous views on the price negotiation. The Democrats have been very public about their determination to do something about drug pricing, and a failure to deliver on that promise would be unacceptable to their leadership.
That alone makes it more likely some version of legislation enabling/requiring CMS to negotiate with pharma will pass.


3 thoughts on “Will we or won’t we negotiate drug prices?”

  1. So, what’s the downside of Medicare negotiating with Pharma much as the VA now does? I’ve heard that the formulary would have to be much bigger, but that seems like something that could be worked out, doesn’t it?

  2. Please work on negotiating prices with drug companies. Actiq and Fentora, both of which are drugs useful to me, are prohibitively expensive. I use them because I cannot keep regular pill medications down. What alternatives do I have??

  3. Is the cost too much…
    HA, I say to ‘you’!
    You are not the one suffering day in and day out with pain issues that will not allow you to preform the simple task each day, that are easily taken for granted .
    I only had the brief opportunity to have an adequate source of pain relief provided through a medical study.
    Since this time, I was advised that even with the help through my fiances insurance (which she pays for and carries me under her wing), this medication would only be available at the discounted price of $40 a pill.
    Not to be funny but, the funny part is that an individual requiring this type of treatment has a serious inability to provide for ones-self; so for this medication to truly make an impact along with carrying out its objective of helping those in need, it must be made affordable for all that are in need. Am I right, or am I RIGHT?!?!?
    For a short time that I was fortunate enough to have access to Fentora, I was able to preform my Trade to the fullest potential as was possible (I am a licensed cosmetologist). This may appear to be a bit menial, and yet, since this time I experience far too much pain (and related issues) as to allow me to preform as much as 2 hair cuts back to back, or a shampoo/cut/style. I am not looking for sympathy, I am looking for a reasonable/affordable means that will allow me to be an active, and productive member of society; which economics an in capabilities will not allow me to accomplish at this point and time.
    thanks to all,

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Joe Paduda is the principal of Health Strategy Associates

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