Medicare Could Save $16B Annually If It Negotiated Part D Prices

July 24, 2015

The Wall Street Journal's Pharmalot blog (Silverman, 7/24) reported that a paper, published by Carleton University and Public Citizen, "argues that the federal government could save between $15.2 billion and $16 billion annually if it negotiated with drug makers for Medicare Part D medicines and obtained the same prices that are paid by Medicaid or the Veterans Health Administration." To support their case, “the authors say that 27 of 31 countries in the Organization for Economic Cooperation and Development have been able to purchase a select group of medications at less than 50% of what is paid in the U.S."