Modern Healthcare

Under a bill introduced

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by Democrats Rep. Lloyd Doggett of Texas and Sen. Sherrod Brown of Ohio, the government could approve a generic competitor if a branded-drug manufactur­er doesn’t agree to a reasonable Medicare Part D price for a given medication. This would give teeth to HHS Secretary Alex Azar’s mandate to negotiate prices, but avoids the controvers­y of excluding certain drugs from coverage under Part D. Analysts frequently point out that effective negotiatio­n would require Medicare to be able to refuse to cover certain high-cost medication­s. Doggett and Brown’s proposal has about 100 Democratic co-sponsors. Genericdru­g companies would pay royalties to the branded-drug manufactur­er if their product is approved.

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