Healthy Skepticism Library item: 10951

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Journal Article

Newhouse JP, Seiguer E, Frank RG.
Was Part D a giveaway to the pharmaceutical industry?
Inquiry 2007 Spr; 44:(1):15-25
http://www.ncbi.nlm.nih.gov/sites/entrez?Db=PubMed&Cmd=ShowDetailView&TermToSearch=17583259&ordinalpos=1&itool=EntrezSystem2.PEntrez.Pubmed.Pubmed_ResultsPanel.Pubmed_RVDocSum

Abstract:

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.

Keywords:
Publication Types: Research Support, Non-U.S. Gov't MeSH Terms: Aged Costs and Cost Analysis Drug Industry/economics Drug Industry/legislation & jurisprudence Drug Industry/organization & administration* Formularies Humans Insurance, Pharmaceutical Services/economics* Insurance, Pharmaceutical Services/legislation & jurisprudence Medicare/economics Medicare/legislation & jurisprudence Medicare/organization & administration* Pharmaceutical Preparations/classification Pharmaceutical Preparations/economics* Substances: Pharmaceutical Preparations