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What is CMS Trying to Accomplish with Drug Price Negotiations?

Posted on January 21, 2025 by John C. Goodman

The selections continue the very newly minted tradition of maximizing politics over substance. The poster child of the “need” for negotiation is a branded drug with no (branded) competition and an extremely high price per dose, treatment, or beneficiary. The first 10 drugs contained many that looked nothing like this – notably Xarelto and Eliquis, two blood thinners that are relatively cheap, compete vigorously with one another, and are simply used by a large number of seniors. The second round of choices continues the tradition:

  • None of the 15 proposed drugs for negotiation crack the top 75 highest average spending per beneficiary (the highest is Pomalyst at 89th).
  • None of the 15 proposed drugs are in the six highest total spending drugs of 2022 (Ozempic is 7th).
  • More than 260 drugs are utilized by more beneficiaries than any of the proposed 15 drugs for negotiation.

Source:  American Action Forum

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For many years, our health care blog was the only free enterprise health policy blog on the internet. Then, when the NCPA closed its doors, the health blog stopped as well.

During this five-year hiatus no one else has come forward to claim the space. So, my colleagues and I have decided to restart the blog in connection with the Goodman Institute. We invite you and others to use this forum to share your views.

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