Abstract

How Do Commercial Insurance Plans Fare Under Proposed Prescription Drug Price Regulation?

Highlights

  • The 2 leading current proposals to control prescription drug pricing in the US, H.R. 3 and H.R. 5260, propose new negotiation authority for the Secretary of Health and Human Services to establish prices for selected high-expenditure drugs

  • While the prospect of federal price negotiation of drugs for all US payers has been discussed for decades,[2] the current debate in the US Congress has raised the possibility of a policy design that would be limited to Medicare only

  • Such a policy design has led to concerns regarding direct harm, namely that passage of a Medicare-only policy will cause pharmaceutical companies to increase the prices of drugs paid by commercial insurers and their beneficiaries

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Summary

Introduction

The 2 leading current proposals to control prescription drug pricing in the US, H.R. 3 and H.R. 5260, propose new negotiation authority for the Secretary of Health and Human Services to establish prices for selected high-expenditure drugs. While the prospect of federal price negotiation of drugs for all US payers has been discussed for decades,[2] the current debate in the US Congress has raised the possibility of a policy design that would be limited to Medicare only.

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