Saturday, December 03, 2016

Costs and Benefits

We don't do too much analysis of costs and benefits when it comes to prescription drugs. Other countries do. They first see whether the new drugs really have solid benefits that the proposed price justifies. Then, they'll haggle over the price. We don't regulate or negotiate the prices of new prescription drugs when they come onto market.  The drug companies charge what they want. As a result, we pay more than other countries do.

There is one exception. The VA does negotiate drug prices. It gets drugs that are usually 40 percent cheaper than what Medicare pays. But it also covers fewer products.

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