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.

Related posts:

1. A warning to those who want government negotiation of drug prices
2. Lower drug prices, but fewer choices
3. The unintended consequences of preventing patient falls
4. Soft sell
5. Are the Olympics going to affect prescription drug supply?
6. Unintended consequences of mandates
7. USA Today op-ed: Medicare’s never events and the unintended consequences affecting patient care

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Tagged as: Medicare