tci Medicare Compliance & Reimbursement - 2007 Issue 1

MEDICARE PART D: Democrats May Have The Wrong Idea About Negotiating Drug Prices, NCPA Claims

Why repealing the ban could be useless for Part D.Although many industry leaders cheered the Democrats' promise to repeal the legislation that bans Medicare from negotiating drug prices directly with pharmaceutical companies, a new brief finds that this may not actually lower drug prices for Medicare.What lawmakers are forgetting is that market power will often win out over bargaining power, claims a new issue brief from the National Center for Policy Analysis (NCPA). Although Medicare is the largest buyer when it comes to prescription drugs, many pharmaceutical companies have patents on their drugs, giving them monopolies on...

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