The current ban on government negotiations with pharmaceutical companies serves to protect Medicate recipients by using the positives of the free market, such as the experience and purchasing power of PBMs. While there are serious potential problems with this approach, such as the potential for fraud between pharmaceutical companies and private interests, overall the ban on government negotiations with pharmaceutical companies provides a good balance between recipient and government interests.
Works Cited
American Legislative Exchange Council. Prescription Drugs. 19 October 2005. http://www.alec.org/2/4/talking-points/7.html
Barry, Patricia. New Salvos in the Prescription Drug Wars: Class action suits are exposing schemes that gouge consumers. AARP Bulletin, January 2005.
19 October 2005. http://www.aarp.org/bulletin/prescription/a2005-01-06-salvos.html
Haislmaier, Edmund F. Compromising Quality: The High Cost of Government Drug Purchasing
The Heritage Foundation Backgrounder #1764, May 25, 2004. 19 October 2005. http://www.heritage.org/Research/HealthCare/bg1764.cfm
Kaiser Family Foundation. Prescription Drug Costs. 19 October 2005. http://www.kff.org/rxdrugs/7175.cfm
Office of Legislative Policy and Analysis. 2003. Session I - P.L. 108-173 - Medicare Prescription Drug, Improvement, and Modernization Act of 2003. 19 October 2005. http://olpa.od.nih.gov/actions/public/108session1/pl108-173.asp
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