Medicare should negotiate with drugmakers. But not set prices

The newly implemented rules in America that allow Medicare to negotiate drug prices could have damaging effects on innovation in the pharmaceutical industry and may discourage investment in new medicines, leading to fewer treatments in the future. Instead of focusing solely on price controls for drugs, regulators should address the issues within the rest of the supply chain, such as opaque middlemen and hospital mergers, to effectively lower healthcare costs.

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Relevant topic timeline:

8/15/2023

Drug makers have tripled the prices of top Medicare drugs

Main topic: The exorbitant price hikes of the top 25 costliest drugs for Medicare Part D plans. Key points: 1. The price hikes of these drugs have more than tripled their list prices since entering the market. 2. The price increases far outstripped the rate of inflation, ranging from 20 percent to 739 percent. 3. Only one drug had price increases below the rate of inflation, while the average lifetime price increase for the top 25 drugs was 226 percent.

8/21/2023

3 Reasons Why The Biopharma M&A Market Is Ready For Takeoff

M&A activity in the healthcare sector has been slow in 2023, but experts predict an influx of biopharma M&A deals in the second half of the year due to a looming patent cliff, low valuations, and a weak IPO market. Several large pharmaceutical companies are seeking late-stage assets to offset revenue decline from expiring patents. The low valuations of biotech companies make them attractive to buyers, and the slow IPO market further drives M&A activity. However, antitrust scrutiny from federal regulators could pose a potential challenge.

8/23/2023

Understanding Mergers Between Hospitals and Health Systems in Different Markets

Cross-market mergers between health care providers operating in different geographic markets can lead to increased prices and reduced access to care, despite potential benefits of efficiency and quality improvement, according to evidence and experts. Government antitrust agencies have started to scrutinize these mergers, but there is a lack of detailed guidelines and funding for litigation, allowing cross-market mergers to persist. Policymakers and regulators have proposed options such as increased scrutiny, prior approval requirements, and prohibiting certain contract clauses to address these concerns.

8/24/2023

White House to name first 10 drugs for Medicare negotiations early

The Biden administration is expected to announce the first 10 prescription drugs selected for Medicare price negotiations, marking a major step towards lowering drug prices through direct negotiations with pharmaceutical manufacturers.

8/25/2023

AstraZeneca sues US over Medicare drug price negotiation plans

AstraZeneca has sued the U.S. government to block a program that allows Medicare to negotiate lower drug prices, claiming that it would hinder the development of new medicines.

9/14/2023

Medicare Begins Drug Price Negotiations, But Benefits Won't Arrive for Years

Summary: Medicare has started its first round of drug price negotiations, which is expected to benefit enrollees in the future, but immediate steps should be taken to lower medication costs.

9/21/2023

New Obesity Drugs Promise Weight Loss But Could Overwhelm Health System

The introduction of weight-loss drugs like Wegovy could lead to a healthcare crisis, as the cost and demand for these medications may overwhelm insurers, employers, and government programs that purchase medications in the United States.