The value of creating a larger government role in the negotiation of drug prices may be "overstated," America's Health Insurance Plans says.
In defending the prescription drug program under Medicare, AHIP said creating a larger government role in the negotiation of rebates from drug manufacturers would either compete with or replace the private plans that have successfully administered the Part D program,
The only way the government could achieve savings comparable to private plans would be to establish a national formulary akin to a Veterans Administration-type system, AHIP said.
Moreover, "Part D prescription drug plans are exceeding expectations by offering more comprehensive benefits and lower premiums than originally anticipated," AHIP said. "Plan sponsors have accomplished this by using tools and techniques to promote quality while holding down costs to beneficiaries, reducing medication errors, and promoting clinically sound drug usage."
AHIP's comments were submitted in a statement to a hearing by the House Oversight Committee.
