Was Part D a Giveaway to the Pharmaceutical Industry?
The Medicare Modernization Act (MMA) prohibited the government from negotiating drug prices, a feature that the act's critics characterize as a giveaway to the drug industry. Instead of the government negotiating to keep prices down, the act relies on competition among drug companies to obtain...
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| Main Authors: | , , |
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| Format: | Book |
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SAGE Publishing,
2007-02-01T00:00:00Z.
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| Online Access: | Connect to this object online. |
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| Summary: | The Medicare Modernization Act (MMA) prohibited the government from negotiating drug prices, a feature that the act's critics characterize as a giveaway to the drug industry. Instead of the government negotiating to keep prices down, the act relies on competition among drug companies to obtain business from private insurers; yet, competition cannot be effective when there are no close clinical substitutes. In the past few years, the rate of introduction of first-in-class drugs has been low; if this continues, the prohibition on negotiation may be only a minor problem. However, if the prior rate of introduction resumes, the government may find itself with unacceptable expenditure levels. |
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| Item Description: | 0046-9580 10.5034/inquiryjrnl_44.1.15 |