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US130 - Regulation of Prescription Drug Prices
| Prescription drugs that are critical for health should have prices set at fair levels through government regulation | |
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Description
Prescription drug companies charge different prices to government (Medicare), insurers (negotiated), and individuals (retail). The Medicare price is generally lowest, and insurers pay about 30% less than individuals. The drug companies negotiate deals with insurers in the form of rebates.
The Medicare price for prescription drugs should be the price for all (i.e., insurers and individuals also). This figure should be renegotiated as necessary to be appropriate as a universal price.
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