Christopher Shays: “I am opposed to H.R. 4. Despite the rhetoric we're hearing on this issue, the fact is seniors are already realizing…”

“I am opposed to H.R. 4. Despite the rhetoric we're hearing on this issue, the fact is seniors are already realizing significant savings from negotiated prices. With plenty of competition between Medicare prescription drug plans driving prices lower, the free market is working. Why fix something when it's working? Seniors should understand the government isn't in charge of negotiating prices because the government doesn't administer the benefit. Private plans do. The negotiation takes place through private carriers who provide this service already for prescription drug beneficiaries like the United Automobile Workers of America. Most prescription drug plans use pharmacy benefit managers, or PBMs, to negotiate drug prices for them. These PBMs already negotiate drug prices for private insurers, and now, with the added market power of Medicare beneficiaries, PBMs are getting lower prices not only for Medicare beneficiaries, but for everyone on whose behalf they are negotiating. I noted with interest the Congressional Budget Office report on this legislation, which stated that the federal government lacks the leverage to achieve savings over what private plans are already negotiating. Furthermore, the CBO report notes because Medicare prescription drug plans bear substantial financial risk, they already have strong incentives to negotiate deep discounts on prescription drugs.”