Despite what some Congressional Dems say, requiring CMS Secretary Mike Leavitt to negotiate drug prices with big pharma is not going to save us gazillions of dollars.
It also won’t lead to a sudden decline in pharmaceutical research (sorry, Manhattan Institute). It’s good political theater, but the real impact will be minimal.
Unless…
…Leavitt gets the authority to select which drugs are bought.
There are lots of multi-source brand drugs, drugs that have very similar therapeutic benefits and chemical composition, and therefore in many instances are interchangeable. (OK, not in all, but in many). Every other country pits manufacturers of these multi-source brand drugs against each other, to good effect. This strategy is a primary reason brand drug costs for European countries are 40% below what we Americans pay.
Yes, this would reduce the variety of drugs available, but there is ample precedent for the effectiveness of formulary management. And an oversight board would ensure patient safety is not compromised.
So, if the Democrats are really serious about lowering prescription drug costs, they will have to provide Sec. Leavitt with the negotiating leverage to do so. And to do that they will need a good bit more intestinal fortitude to pass a bill that will be more contentious, but much more effective, than the one on the table today.
Please forgive the ignorant question, but how does the VA negotiate drug prices, and what impact has that had?
“Unless…Leavitt gets the authority to select which drugs are bought.”
Now yer talkin.