That’s not a negotiation, that’s a shakedown.
It’s one factor to wish to get the federal government concerned in offering monetary help to Medicare sufferers in search of treatment, and one other factor solely to have the federal government successfully setting drug costs by indiscriminately throwing its weight round.
The results of the latter may very well be extreme. Driving costs down by means of what are successfully value controls would cut back incentives to innovate and drive some drug producers out of enterprise, thereby limiting provide.
A current CBO report estimated there could be 59 fewer new medication launched, many with life-saving potential, over the following three a long time as a consequence of Medicare “negotiations” and sanctions.
Entry to medication would even be curtailed by one other new energy Medicare would acquire by means of elimination of Half D’s “non-interference clause”: the flexibility to set a nationwide formulary and thereby centrally restrict entry to sure pharmaceuticals for Medicare sufferers.
Are prescription drug costs extreme? Virtually actually so. Nevertheless it’s an issue largely created by authorities intervention—by means of overreliance on third-party payers and extreme and costly rules.
One of the best resolution shouldn’t be extra authorities intervention or permitting bureaucrats to come back between docs and sufferers.