Tuesday, June 21, 2005
Pharmaceutical companies’ impending fight against proposals that would pinch Medicaid spending on medicines will pit the industry against the nation’s governors and congressional Republicans who are its traditional allies.
As the debate over reducing Medicaid spending moves ahead, the brand-name-drug industry appears poised to urge Congress to look elsewhere for the savings. In a written statement issued Friday, Pharmaceutical Research and Manufacturers of America (PhRMA) Senior Vice President Ken Johnson emphasized that drug costs constitute a small fraction of Medicaid’s expenses that will drastically diminish when Medicare begins covering drugs for senior citizens and the disabled next year.
Note: CMS is prohibited by law from negotiating with the pharmaceutical companies for lower drug prices for Medicare beneficiaries.
Related link: Pharmaceutical company profit margins 2001 (see page 37)