Unintended consequences of the government negotiating drug prices

A dissenting opinion suggesting that what the Democrats want to do – namely allowing Medicare to negotiate drug prices – will increase cost. DTC advertising is one sticking point that will prevent this approach from working:

In fact, the government negotiating on behalf of Medicare beneficiaries may lead to some unintended adverse consequences. Since direct-to-consumer advertising is legal in the U.S., there is nothing preventing pharmaceutical companies from funding a torrent of advertisements for the “latest and greatest” drug, thereby creating a strong demand within the Medicare population for coverage of the drug. How firm can the government stand when negotiating for a drug being clamored for? This is not the sort of bargaining power that will lead to lower prices.

Prev
Next