Last edited Tue Sep 10, 2019, 08:16 AM - Edit history (2)
That would allow the federal government to negotiate drug prices on hundreds of drugs in Medicare that do not have competitors and would offer those prices to all consumers.
From the article itself:
The bill would allow the health and human services secretary to directly negotiate prices on the 250 drugs that pose the greatest total cost to Medicare and the U.S. health system that do not have at least two competitors. That would include some insulins, cancer treatments and specialty drugs.
This expands the negotiating power for Medicare, and will expand affordable access to those who are not on Medicare for drugs that only one or two pharmacuetical companies provide. That is the most urgent need right now, and its something that even the most hard line free market types would have a hard time arguing with.
In any case, this bill will never see the light of day prior to 2021 in the Senate. It also would create much less of a backlash from the powerful Pharma lobby going into the 2020 elections than if you say "The federal government is essentially going to take over the Pharmacuetical industry via pricing on all drugs." Can you imagine what the GOP would do with that in the 2020 elections. YOUR BUSINESS WILL BE NEXT IF DEMOCRATS WIN!
Also - you have to give them something to lose if they don't comply - that's why we make plea deals with criminals if they cooperate and have something valuable that we need.
The legislation would also use an international pricing index that would ensure U.S. consumers do not pay more than beneficiaries in other countries, where prices are often lower because their governments directly negotiate prices. That is similar to a more limited proposal the Trump administration has making its way through the rulemaking process, which would base the price of some drugs in Medicare on the lower prices paid by other countries.
The bill would impose severe penalties on drugmakers that do not reach an agreement with the government or refuse to participate in the negotiation. They would face a noncompliance fee equal to 75 percent of the gross sales of the drug being negotiated from the previous year.
Drug manufacturers would face an inflation rebate and would have to pay the U.S. Treasury money if they raise prices above the rate of inflation on the more than 8,000 drugs in Medicare Part B, which covers expensive physician-administered drugs for cancer, dialysis and other illnesses, and Part D, its prescription drug benefit. If the manufacturer has raised the price above the rate of inflation since 2016, it can either lower the price or pay the price above inflation back to the Treasury, according to the summary. The proposal also aims to use its anticipated savings to cap out-of-pocket costs for seniors, according to the summary.
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