Challenges pharmaceutical companies and some economists are worried that the government could their own their own Medicare drug plan that ‘gets best price ‘offered to a private plan. Lifted negotiate negotiate further discounts, the approach to drugs drug plan probably its own formulas, establish the Times reports James Lang – a former president of Anthem Prescription management , which manages drug benefits for about five million people – said: ‘to make this work, policy initiatives have to take over the government price negotiations, it would take you about formularies. Without the other erectial dysfunktion . ‘Lang added:’Drug manufacturers will not give something for nothing , you will want a preferred position on the Medicare formulary. Of its products way to increase the market share of their products ‘However, Durbin said, ‘This is just good old-fashioned free-market economy. When you buy in bulk, the price goes down. ‘Another possible challenge for the Democrats plan is that some members, including some Democrats might try to hold hearings, which could passing laws passing legislation. Current federal law requires pharmaceutical companies, discounts for most brand-name drugs by Medicaid and for the Department of Veterans Affairs drug program, the prices will be covered under negotiation. Leavitt said the VA program is not a good model for Medicare over Democrat policy initiatives Kaiser Family Foundation Medicare negotiate prescription drug prices (Seabrook, ‘Weekend Edition Sunday, Audio of the segment is available online.
Alain Enthoven / Kyna Fong, Wall Street Journal: There are several good reasons why the government negotiations can negotiations drug costs, Enthoven, a professor emeritus at Stanford University’s Graduate School of Business of Business and Fong, a graduate student in economics at the school, in a journal commentary Write Enthoven and Fong, people often confuse market power, bargaining power, adding: The thinking goes, the greater the share of the market , the buyer shall bargaining power bargaining power and therefore are negotiated lower prices. But by Enthoven and Fong, [t] has reasoning with drug not. Because the seller is frequently a monopolist can not be be replacement of spares replacement of spares. Instead, the only threat is exclusion from the market. In addition, a party bargaining power simply by his ability to say no, walk away from the table, determined without an agreement, well-known economicIn government negotiations, there are very few drugs[ officials] without political backlash from physicians and the Medicare population, to exclude a very influential group of voters, said Enthoven and Fong. They add that the negotiations would not because of the well-known economic argument that the market-determined price is the only fair price to work. How can the government determine what price fair , what price reasonable pharmaceutical company paid for their ? research and development efforts (Enthoven / Fong, Wall Street Journal. (more…)