President Trump misunderstands what government drug price negotiations entail

N/A by N/A is licensed under N/A N/A
President Trump recently pledged to let federal officials negotiate the prices of drugs covered under Medicare. He claims this will save taxpayers billions of dollars.

Nobody doubts that Trump and his team are shrewd negotiators. But the sorts of "negotiations" that Trump refers to have nothing in common with haggling over a real estate deal. Instead, the action that Trump has proposed — repealing the non-interference clause, originally drafted by Democratic Senators Ted Kennedy and Tom Daschle — would result in Medicare drug prices going up and patient choice going down.

This clause has been the key to Medicare's success. Between 2004 and 2013, the Medicare "Part D" prescription drug benefit program cost an extraordinary 45 percent less than initial estimates. Premiums for the program also are roughly half of the government's original projections.

These unprecedented results are largely due to Part D's market-based structure. Beneficiaries are free to choose from a slate of private drug coverage plans, forcing insurers to compete to offer the best options to American seniors. This year, seniors can choose from among 746 plans nationwide, with an average monthly premium of around $35.

 
Article Photo Credit: N/A by N/A is licensed under N/A N/A
Sign Up for Our Email Newsletter

RECENT NEWS

Baby formula shortage: ‘There is light at the end of the tunnel,’ former FDA exec says

Baby formula shortage: ‘There is light at the end of the tunnel,’ former FDA exec says

Peter Pitts, president of the Center for Medicine in the Public Interest, joins Yahoo Finance Live to discuss the ongoing...  Read more

Former FDA official rips Biden over handling of baby formula shortage: 'Smoke and mirrors'

Former FDA official rips Biden over handling of baby formula shortage: 'Smoke and mirrors'

Peter Pitts, a former FDA associate commissioner, joined 'Fox & Friends First' to discuss the Biden administration's hand...  Read more

Peter Pitts speaks to CNN about baby formula shortage
  • CNN
  • 05/13/2022 12:00 AM

Peter Pitts speaks to CNN about baby formula shortage

Former FDA Associate Commissioner Peter Pitts speaks with CNN on the shortage of baby formula on May 13, 2022....  Read more

DRUGWONKS BLOG