A Modest Proposal: Negotiate Medicare Drug Prices

For some time, drug spending in Medicare Parts D and B has grown faster than overall Medicare spending. Drug price inflation is acute for specialty drugs, but exists in all markets with insufficient competition. Medicare purchasing rules favor the pharmaceutical industry. This article explains how negotiation rules could better serve patients and taxpayers and recommends focusing on markets without generic or similar branded products, for the greatest savings. This process would lead to lower Medicare costs for taxpayers and beneficiaries, while preserving drug development incentives.