In order to make Medicare drug price negotiation a reality, the government has to have additional leverage to negotiate that it doesn't have, explained Ed F. Haislmaier, the Preston A. Wells Jr senior research fellow at the Institute for Family Community, and Opportunity at The Heritage Foundation.
In order to make Medicare drug price negotiation a reality, the government has to have additional leverage to negotiate that it doesn't have, explained Ed F. Haislmaier, the Preston A. Wells Jr senior research fellow at the Institute for Family Community, and Opportunity at The Heritage Foundation.
Transcript
With President Donald Trump focusing more on drug costs and patients feeling a greater burden from them, do you think drug price negotiation with Medicare can become a reality?
The problem with drug price negotiation proposals, is that if you want to get a lower price than you’re getting today, you have to have an "or else" from the pharmaceutical companies. And the "or elses", the alternatives, are 1) give us a lower price or we won’t let the patients get your drug, or 2) give us the lower price or we will take away your property rights, your patents. Neither of those "or elses" are particularly attractive.
So, what that means as a practical matter is members of Congress can put bills in for drug price negotiation, but unless they’re willing to take the politically unpopular stand of not letting seniors have drugs if the company doesn’t play ball, or taking away property rights, then the Congressional Budget Office is gonna score them a zero. The private sector already has leverage to negotiate. The government doesn’t have any additional leverage the private sector doesn’t have except the ability to deny the drug to the patient or the ability to take away their property rights.
Exploring Medicare Advantage Prior Authorization Variations
March 26th 2024On this episode of Managed Care Cast, we're talking with the authors of a study published in the March 2024 issue of The American Journal of Managed Care® about their findings on variations in prior authorization use across Medicare Advantage plans.
Listen
The Supreme Court seems likely to reject a challenge to the abortion pill mifepristone; the FDA is inspecting far fewer pharmaceutical companies conducting clinical research; AstraZeneca has sued to block an Arkansas law that it said would unlawfully expand the 340B program to include for profit-pharmacy chains.
Read More
Navigating Health Literacy, Social Determinants, and Discrimination in National Health Plans
February 13th 2024On this episode of Managed Care Cast, we're talking with the authors of a study published in the February 2024 issue of The American Journal of Managed Care® about their findings on how health plans can screen for health literacy, social determinants of health, and perceived health care discrimination.
Listen
A global AIDS program that was in limbo for months got temporary relief after congressional negotiators agreed to a 1-year renewal in the next government funding package; the outcome of the November presidential election could determine the state of fetal tissue research in the US; federal officials and industry executives failed to make improvements that stop hacking attacks.
Read More