Legislation requiring the federal government to negotiate with the pharmaceutical industry for lower Medicare Part D drug prices could backfire on the program, officials from the Centers for Medicare & Medicaid Services (CMS) warned Congress.
The bill, a key plank in this year's legislative agenda being pushed by congressional Democrats, would not generate any savings at all, testified actuaries from CMS. "Although the bill would require the secretary [of Health and Human Services] to negotiate with drug manufacturers regarding drug prices, the inability to drive market share via the establishment of a formulary or the development of a preferred tier significantly undermines the effectiveness of this negotiation," said Paul Spitalnic, director of the Parts C and D Actuarial Group in the Office of the Actuary. "Manufacturers would have little to gain by offering rebates that aren't linked to a preferred position of their products, and we assume that they will be unwilling to do so."
A separate report issued by researchers at the Government Accountability Office stopped short of predicting failure. It did, however, raise questions about the feasibility of the plan.
Although the annual HIV diagnosis rate between 2010 and 2014 decreased for black individuals by 16.2%, blacks remain disproportionately affected by HIV/AIDS.
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