Medicare Negotiation: A "Too Little" or "Too Late" Framework for Drug Selection
Recent draft pieces of legislation and regulation take aim at the rising cost of drugs, targeting drugs that claim the largest share of the health care budget and that face limited competition from generics or biosimilars.
Dr. Peter Bach proposes an alternative set of drugs for price negotiation: those that have too little evidence to support full approval or are too late in their life cycle to justify continued high prices.
Changing the pricing approach so that only drugs that meet the "too little" or "too late" criteria would be up for price negotiation would allow Medicare to sidestep some thorny questions, deliver substantial savings, and preserve the current incentive framework for pharmaceutical innovation.
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