Government's role in Medicare drug prices:A major issue currently under debate involves the...

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Government's role in Medicare drug prices:A major issue currently under debate involves the appropriate role for government regarding drug prices for Medicare beneficiaries under the Part D drug benefit. The law specifically prohibits the government from participating in negotiations between the drug plan sponsors and drug manufacturers and pharmacies, establishing any specific list of drugs that will be covered (formulary), or imposing any price controls on drugs. Supporters of this market-based approach believe that the competition for enrollees will cause plans to negotiate with drug manufacturers and pharmacies to offer drugs at the lowest possible prices, while opponents state that the lack of federal regulation and negotiating power will lead to higher costs for Medicare and for Medicare beneficiaries, many of whom still face sizable out-of-pocket costs for prescription medications.  • Are there measures that the government could take to encourage companies to conduct research and development and still control the costs of pharmaceuticals? How is it done in other nations?  • How will the PPACA affect prescription drug costs and spending for patients and industry?  Write a three page paper explaining your postion. Site your sources and APA Rules apply.
	
Document Preview: Government's role in Medicare  HYPERLINK "http://www.plymouth.edu/webapp/courses2/mod/assignment/view.php?id=132365" drug prices:A major issue currently under debate involves the appropriate role for government regarding drug prices for Medicare beneficiaries under the Part D drug benefit. The law specifically prohibits the government from participating in negotiations between the drug plan sponsors and drug manufacturers and pharmacies, establishing any specific list of drugs that will be covered (formulary), or imposing any price controls on drugs. Supporters of this market-based approach believe that the competition for enrollees will cause plans to negotiate with drug manufacturers and pharmacies to offer drugs at the lowest possible prices, while opponents state that the lack of federal regulation and negotiating power will lead to higher costs for Medicare and for Medicare beneficiaries, many of whom still face sizable out-of-pocket costs for prescription medications.Are there measures that the government could take to encourage companies to conduct research and development and still control the costs of pharmaceuticals?  How is it done in other nations?How will the PPACA affect prescription drug costs and spending for patients and industry?Write a three page paper explaining your postion. Site your sources and APA Rules  HYPERLINK "http://www.plymouth.edu/webapp/courses2/mod/assignment/view.php?id=132365" apply.

David · Accepted Answer

The states have proposed various laws to reduce consumer costs. The various arguments for and against the proposals to constrain the prescription drug costs are: 
The discounts for the uninsured via Medicaid discount reduces the cost of the disadvantaged population and require less state funding but whether this plan can be implemented legally is a question.
The pharmacy discount plan provides the benefit of immediate cost reduction to large population but at the same time create cost demand from pharmacy rather than manufacturers.
The State run Medicaid Rx plans provided highest protection for the state Medicaid recipients but on the other hand it becomes very costly plan for the state.
The reimbursement plan is conceptually simple,

Government's role in Medicare drug prices:A major issue currently under debate involves the appropriate role for government regarding drug prices for Medicare beneficiaries under the Part D drug...

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