In what some may call a quixotic move, a group of Democratic lawmakers on Wednesday will introduce a bill that gives the federal government the authority to negotiate drug prices for Medicare.
The bill would allow formulary changes to generate more competition among companies that want preferred coverage for their medicines and also establish so-called fallback prices. These would allow the Department of Health and Human Services to pay what other countries or government agencies, such as the Department of Veterans Affairs, pay for a medicine if negotiations fail.
Unlock this article by subscribing to STAT+ and enjoy your first 30 days free!
GET STARTEDWhat is it?
STAT+ is STAT's premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis. Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond.
What's included?
- Daily reporting and analysis
- The most comprehensive industry coverage from a powerhouse team of reporters
- Subscriber-only newsletters
- Daily newsletters to brief you on the most important industry news of the day
- STAT+ Conversations
- Weekly opportunities to engage with our reporters and leading industry experts in live video conversations
- Exclusive industry events
- Premium access to subscriber-only networking events around the country
- The best reporters in the industry
- The most trusted and well-connected newsroom in the health care industry
- And much more
- Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr.
About the Author Reprints
A more recent Kaiser Family Foundation survey showed that 92% of Republicans and Independents and 96% of Democrats support Medicare negotiating drug prices: https://www.kff.org/report-section/kaiser-health-tracking-poll-late-april-2017-the-future-of-the-aca-and-health-care-the-budget-rx-drugs/.