U.S. HOUSE TO VOTE ON BILL REQUIRING HHS TO NEGOTIATE MEDICARE DRUG PRICES

A bipartisan group of U.S. House of Representative members is continuing to push for passage of a bill allowing the government to negotiate drug prices for Medicare Part D, even while the government agency in charge of the program said the bill will not save money.

H.R.4, the "Medicare Prescription Drug Negotiation Act of 2007," would require the HHS secretary to negotiate with drug companies for better prices on Medicare drugs. Reps. John Dingell (D-Mich.), Charles Rangel (D-N.Y.) and Jo Ann Emerson (R-Mo.) introduced the bill, which is scheduled to be voted on today.

In a Jan. 11 press conference, the bill's sponsors said the pharmaceutical industry could not be trusted to deliver the lowest prices on prescription drugs, and the government must have some say. The bill would allow the HHS secretary to use the buying power of Medicare beneficiaries to gain better drug deals, Dingell said.

However, critics of the bill say it would be ineffective in getting better costs. Actuaries at the Centers for Medicare & Medicaid Services (CMS) said the HHS secretary will lack the ability to successfully negotiate without creating a formulary, an authority the bill does not give him. Established Part D plans will remain the only real way for the government to negotiate prices, the CMS said in a Jan. 11 press release.

The Congressional Budget Office also said the secretary would be unable to get better prices than those already obtained by prescription drug plans.