Many people are concerned about the excessively high cost of health care. A major factor in the cost is the price of drugs. This, in turn, is due to a law entitled Medicare Part D.
This law was written in 2003 when I was an active member of the National Association of Retired Federal Employees. I was present then, and there was a balance of power between the parties in Congress. Democrats were pushing to provide Medicare. Republicans were pushing to ensure that pharmaceutical companies would benefit from the passage of the law. Eventually, they compromised. Republicans agreed with the passage of the law only if it contained a provision that government employees wouldn’t negotiate prices of drugs.
Drugmakers raised prices at will. However, the VA didn’t have provisions. They maintained good control of prices so the same drugs could be purchased for VA patients at a much lower cost than they were for Medicare patients. Canadians also could negotiate better prices than Americans could.
The effects of this law are dramatic and drug companies are making millions of dollars more every year. Drug prices have recently surged again.
