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Could Drug Price Fixing Cost the Taxpayer Money? 17 January, 2007

Posted by stoptaxing in federal.

Speaker Nancy (pay through the nose) Pelosi is pushing through the house  a measure to “allow the Sec. of DHHS” to negotiate drug prices in the new prescription drug coverage.  The nonpartisan CBO (Congressional Budget Office) said it won’t save any money. 

Why not?  Ways and Means Chairman Charlie Rangle and Senate Finance Chairman Baccus are skeptical and want hearings to ensure such important legislation is done correctly.   The prescription drug benefit is the first federal program in memory to come in below CBO and OMB estimates.  The reason is that it contains market based cost containment.  The insurance companies participating negotiate their deals.  Wonder of wonders freedom works. 

 The program also gets high marks from seniors in every survey and customer satisfaction survey.  Well if it is working, why not fix that problem!  Not so fast, the Dem prescription drug plan was scored by CBO at 800 billion dollars or almost twice what the Bush plan costs.  No wonder Speaker Pay-Through-the-Nose would like to avoid any hearings to ruin her press release. 

 Here is an interesting link on the case against price controls in medicine.  http://www.gopusa.com/theloft/?p=398



1. euandus2 - 16 November, 2009

The drug companies claim they are raising prices because some of their patents will expire soon. However, it is convenient that they are doing so before the planned health insurance reforms go into effect. I recommend the following post: http://euandus3.wordpress.com/2009/11/16/drug-companies-as-feeding-machines/

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