I will make the case that it does. I believe I will show that GAO happens to agree with me. GAO has studied this issue. They basically said it boils down to the fact that if everybody gets a discount, nobody gets a discount. That is the economics of it. Right now, you have a system where Medicaid gets the best price. Medicaid gets the best price--lowest price--in the country. But if everybody gets it, nobody gets it. If everybody gets a 15-percent discount, that is the price. This is not a discount. That is exactly what we are doing here. You are going to increase the cost of Medicaid by not giving a discount. Does that mean everybody's drug costs are going down? Actually, no. It means the discount or the best price is going up.
Don Nickles: “I will make the case that it does. I believe I will show that GAO happens to agree with me. GAO has studied this issue.…”
On the recordJuly 18, 2002
Source
govinfo.govEditor's note · Context
Discussing the implications of drug pricing and discounts in relation to Medicaid.
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