In a recent interview with HuffPost, he said he remains confident that Democrats will ultimately get behind reforms that produce significant savings for taxpayers, employers and individuals buying drugs at the pharmacy counter.
One way it might work, sources have said, is that the government would go back to the launch price of a drug, use one of several available figures for what private insurers actually paid for the drug at the time, adjust it by some percentage and account for inflation ― and then use that figure for the upper limit on what a drug company could charge.
The inflation caps could be crucial for another reason. Extending negotiated prices beyond Medicare to the private sector, as H.R. 3 envisioned, may not be possible under the byzantine rules that govern the budget reconciliation process, which is the parliamentary procedure Democrats are using to pass legislation.
As advocates like to point out, much of what passes for “innovation” these days are drugs of questionable clinical value. They say legislation could actually push drug development in the direction of higher clinical value ― in other words, to get more breakthroughs rather than fewer ― by having the federal government invest more in research and development.
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