H.R. 4 Would Have No Effect on Lowering Prescription Drug Prices

Armen Hareyan's picture

Medicare and drug price negotiation

Independent actuaries at the Centers for Medicare & Medicaid Services (CMS) have reviewed H.R. 4 and concluded that government negotiations mandated in the bill would not produce any prescription drug savings.

"Although the bill would require the Secretary to negotiate with drug manufacturers regarding drug prices, the inability to drive market share via the establishment of a formulary or development of a preferred tier significantly undermines the effectiveness of this negotiation," explained Paul Spitalnic, Director of the Parts C and D Actuarial Group in the Office of the Actuary.