Medicare Drug Pricing Bill Passes Committee
In a stab at the pharmaceutical industry, the Senate Finance Committee approved a bill that will allow negotiations for prescription drugs supplied under Medicare. The original legislation to add prescription drug coverage, which commenced in 2006, expressly prohibited negotiations with drug companies on the behalf of Medicare.
Earlier this year, the House of Representatives passed legislation on the same issue except that was more stringent; that bill requires that Medicare negotiate drug pricing with the manufacturers.
Both pieces of legislation are drawing significant fire from all sides of the political spectrum. Republicans, agreeing with pharmaceutical manufacturers, argue that the bill will limit therapeutic options available to patients and not provide any cost savings. Democrats counter that the program will save money in Medicare spending and also benefit Medicare recipients with reduced drug pricing. Reports from the Congressional Budget Office indicate some cost savings for certain drugs while having an overall negligible effect on cost.
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April 16, 2007 Related topics: Legal & legislative, Pricing, Pharmaceuticals, Group purchasing & GPOs