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Wednesday, Aug 25 2021

Full Issue

Perspectives: Negotiating On Medicare Drug Prices Is An Absolute Necessity

Read recent commentaries about drug-cost issues.

"So here's a good idea 鈥" That was the opening line of one of the first television ads I ran as a candidate for the U.S. Senate. The idea? Lowering prescription drug costs by allowing Medicare to negotiate the prices of drugs for seniors. Acting to stop skyrocketing drug prices still couldn't be more urgent. Many seniors have seen eye-popping price increases on many of the drugs they need to survive. In the past five years, the cost of Lyrica, a drug that treats nerve pain, increased 47%, while Symbicort, a medication for asthma and COPD, increased 46%, just to name a couple. And as a result, nearly 20% of older adults have reported not taking their medicines as prescribed because of the cost. (Sen. Amy Klobuchar, D-Minn., 8/23)

So much media coverage regarding the bipartisan infrastructure bill and the reconciliation package has focused on the legislative process for passing the bills. The contents of those packages, however, have received scant attention 鈥 especially the reconciliation bill. "Human infrastructure鈥 and 鈥淏uild Back Better鈥 sound rather nebulous, but in truth, much of the appeal of that social spending bundle centers on health care. And it is there that Democrats鈥 hopes for 2022 primarily rest. They might consider calling it the 鈥淏uild Health Care Better鈥 plan. (Jennifer Rubin, 8/23)

For the last half-century, Congress has endorsed essentially the same approach to cutting health care costs, an approach that came to be called 鈥渕anaged care鈥 by the mid-1980s. Based on the assumption that U.S. health care costs are double those of other wealthy nations because doctors order services patients don鈥檛 need, the solution is to 鈥渕anage鈥 doctors and provide financial incentives that nudge them to cut services. The managed care approach has not only failed to cut costs, it has contributed to health care inflation by encouraging mergers and driving up administrative costs. The failure of the accountable care organization (ACO), a prominent iteration of managed care, illustrates the problem. (Kip Sullivan and James G. Kahn, 8/23)

Whether you鈥檙e aware of it or not, you probably know people who skip taking all the medication they鈥檙e supposed to because they can't afford it. Americans pay three times what people in Canada and other countries pay for the same medicine. It is tragic and shocking, and it鈥檚 long overdue for the president and Congress 鈥 and New York State聽鈥 to take action. AARP has tracked the prices of the most commonly used prescription drugs for well over a decade. Every year those prices have risen faster 鈥 often much faster 鈥 than inflation. Last year, amid the pandemic and economic downturn, the prices for 260 widely used brand-name medications rose more than twice the rate of general inflation, AARP鈥檚 Rx Price Watch Report found. (David McNally, 8/22)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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