Reference no: EM13332893

Government's role in Medicare drug prices:A major issue currently under debate involves the appropriate role for government regarding drug prices for Medicare beneficiaries under the Part D drug benefit. The law specifically prohibits the government from participating in negotiations between the drug plan sponsors and drug manufacturers and pharmacies, establishing any specific list of drugs that will be covered (formulary), or imposing any price controls on drugs. Supporters of this market-based approach believe that the competition for enrollees will cause plans to negotiate with drug manufacturers and pharmacies to offer drugs at the lowest possible prices, while opponents state that the lack of federal regulation and negotiating power will lead to higher costs for Medicare and for Medicare beneficiaries, many of whom still face sizable out-of-pocket costs for prescription medications.

• Are there measures that the government could take to encourage companies to conduct research and development and still control the costs of pharmaceuticals? How is it done in other nations?

• How will the PPACA affect prescription drug costs and spending for patients and industry? Write a three page paper explaining your postion. Site your sources and APA Rules apply.