twoodfin 17 hours ago

Because this isn’t really a “negotiation” as configured by the statute: Medicare doesn’t have a formulary, it doesn’t pay for drugs, the Part D plan providers (some quite large and with their own negotiating heft) do.

It’s a price-setting exercise. Yes, the drug-maker can walk away, but at the cost of massive punitive excise taxes on selling their drug to anyone in the US, not just Medicare Part D plans.

  • refurb 8 hours ago

    Exactly.

    It's like saying taxes are a "negotiation for a contribution to the state government".

mportela 17 hours ago

Unfortunately, that's all the Biden administration could get written into law. The Big Pharma lobby is too strong and definitely battled to keep this list as small as possible.

  • ourmandave 17 hours ago

    At least the door is cracked open and it's a start.

    Of course, Big Pharma will fight to slam it shut again.

  • refurb 8 hours ago

    That's because it's not really a solution.

    It's not a negotiation between two parties with equal power, it's just the government saying "either pay this price or you'll be penalized".

    The better solution is to allow parallel trade of pharmaceutical across borders.

    It will force countries paying far less to pay more and conversely the US paying less.

    • autoexec 5 hours ago

      > The better solution is to allow parallel trade of pharmaceutical across borders.

      No, no it's only a global economy when companies want to manufacture products using slaves in third world countries or they want to outsource programmers and call center employees, but not when consumers want to buy medications or DVDs at the prices they sell for in those same countries or even just want to get higher quality products they refuse to sell you here (https://www.cbsnews.com/news/hershey-sues-shops-importing-br...)

    • AuryGlenz 7 hours ago

      Or simply set our prices to the average or median of something like 5 hand-picked other countries - and make that not only for Medicare/caid but also for everyone else. It's ridiculous that hasn't been done yet.

      • refurb 7 hours ago

        That doesn’t work because other countries already do that - set price reference to a basket.

        You end up with a circular reference that spirals prices down.

        At some point that price is lower than the net positive profit point.

dboreham 17 hours ago

Because corruption.

  • croissants 15 hours ago

    Pat and cynical oversimplifications are bad for discourse, because they suggest that a default angry response is correct and, coincidentally, frees you from having to think harder about anything.

    Don't give in!

    • KevinGlass 8 hours ago

      We can debate the merits of various drug pricing schemes but at the end of the day, prices are set by a small group of interested actors who want the prices to be as high as they possibly can without causing a violet revolt. So call it what you will but let's not pretend there's some deeper, more important meaning to be sussed out here.