How to cut prescription costs
American Action Network recently bought a half-page ad in The Fresno Bee that asks, “What will happen if government bureaucrats negotiate your Medicare drug coverage?”
Two good things would likely happen: The prices of drugs would drop, and taxpayers would pay less to fund Medicare Part D.
Americans pay more for drugs than any other country in the world. Our prices for the 20 top-selling drugs average three times higher than they do in Britain. Every industrialized country, except for us, has some form of price controls on medications. Although Medicare Part D is the largest buyer of drugs in this country, it cannot negotiate drug prices. It’s the law.
I’m all in favor of drug companies making good profits to pay for research and development, but recent price increases have no discernible motivation other than greed.
The Affordable Care Act has been justly criticized for having inadequate cost controls. Medicare Part D, enacted by Republicans in 2003, has the same problem. Congress needs to give Medicare negotiating power, thus decreasing the high cost for this program, while helping to lower the cost of medicines for all Americans.
Don Gaede, Fresno
This story was originally published April 13, 2016 at 5:36 AM with the headline "How to cut prescription costs."