The Bush administration says there is no room for compromise on one of Democrats’ key initiatives in the new Congress--legislation that would allow the government to negotiate lower drug prices for Medicare enrollees. In an interview with The New York Times, Department of Health and Human Services Secretary Michael Leavitt said market forces, not government price controls, should determine Medicare drug prices. “A robust marketplace with a lot of competitors has driven down prices,” he told the Times.
Rep. Nancy Pelosi, D-Calif., in line to be the next House speaker, has said the House will begin work on legislation to repeal the ban on government negotiation of Medicare drug prices within the first few days after Democrats regain control of the House. According to The Boston Globe, Pelosi’s home state already has taken similar action. With little fanfare, the California legislature passed a bill earlier this fall that allows the state to negotiate drug prices for lower income and underinsured residents, including Medicare enrollees. The state hopes to obtain 40% to 60% discounts on brand-name and generic drugs.
