Democratic presidential hopeful Pete Buttigieg released his plan to lower the cost of prescription drugs today
to compete with private insurers. Those prices would also be available to private health insurance plans and Medicaid. Buttigieg would also cap out-of-pocket spending for seniors and people enrolled in the public option.Buttigieg aims to boost government investment in drug research and manufacturing, particularly for critical areas like pandemic prevention and antibiotics.
The federal government could revoke a company’s patent rights and let others make a drug at an affordable price if the manufacturer refuses to lower the price or in cases of a natural disaster or public health emergency. The pharmaceutical industry would also be on the hook for more of the costs of drugs when seniors with large out-of-pocket spending enter the “catastrophic” phase of the Medicare prescription drug benefit. Drugmakers would also be penalized if the cost of their branded medicines increased faster than inflation.
There’s also no requirement for private insurers or other government programs like Medicaid to use the Medicare-negotiated prices.
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