Health Care & Hospital Law,
Government
Nov. 2, 2023
Medicare and pharma must agree on drug prices – or face penalties
The heavy penalties for noncompliance have been labeled “extortion” by Pharma. They have also been called “turning up to a fight where only one side has a gun.” But Medicare is a completely voluntary program and pharmaceutical companies are not forced to participate in it.
John H. Minan
Emeritus Professor of Law
University of San Diego School of Law
Professor Minan is a former attorney with the Department of Justice in Washington, D.C. and the former chairman of the San Diego Regional Water Quality Board.
The United States has traditionally barred Medicare from negotiating prices with drug manufacturers. This changed with enactment of the Inflation Reduction Act of 2022 (IRA), which created a Drug Price Negotiation Program.
The Program plans to lower the high cost of prescription drugs available to seniors enrolled in Medicare by using its purchasing power to establish a drug price negotiation process. The Secretary of Health and Human Ser...
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