Power to negotiate Medicare drug prices would save $30 billion

April 9, 2007

A new report from the Campaign for America's Future argues that Medicare Part D and beneficiaries would save $30 billion in prescription drug costs if the federal government negotiated Medicare drug prices with pharmaceutical companies.

A new report from the Campaign for America's Future argues that Medicare Part D and beneficiaries would save $30 billion in prescription drug costs if the federal government negotiated Medicare drug prices with pharmaceutical companies. The report compared prices paid by Medicare Part D prescription drug plans (PDPs) and those paid by Veterans Affairs. In addition, the report's authors argue that as much as $5 billion—which could also be saved—is spent by CMS for managing the complex PDPs. Currently, Medicare is prohibited from negotiating with drugmakers, but the Senate is preparing to take up the issue. In January, the House of Representatives passed a bill allowing negotiation as part of the Democrat's First 100 Hours agenda. To help build momentum for the Senate bill, AARP also called for a national call-to-action day, last week, urging members to contact Senators and push for passage of the bill, an effort PhRMA labeled "misguided."

To see more Hot off the Press news articles, click here.

To go to the Drug Topics homepage, click here.