Considerations for Allowing the Government to Negotiate Drug Prices in Medicare Part D
Medicare Part D premiums will increase by 13 percent in 2016, with beneficiaries expected to pay, on average, more than $41 a month for prescription drug coverage. These rising costs—coupled with an increasing number of pricey drugs being placed on specialty tiers within formularies, where out-of-pocket expenses are highest—have spurred discussion around whether laws should be changed to allow the government to negotiate drug prices in Medicare Part D.
In a new Health Affairs blog, experts from The Pew Charitable Trusts examine this policy proposal, urging that policymakers must first consider three questions:
- Which drugs would the government have the authority to negotiate?
- Would the government be able to negotiate both drug price and formulary design?
- Would the negotiated price apply to all Medicare Part D plans?
Read the Health Affairs blog.