The Politics of Drug Prices
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The conventional wisdom in Washington is the Democrats have a winning issue with the public on whether the government should negotiate with the drug companies to set prices. I'm not so sure.
This exchange from Brit Hume's roundtable by Mort Kondracke illuminates how Republicans can win on this issue.
KONDRACKE: J.D. Power and Associates, the consumer satisfaction people, have surveyed this and 75 percent of seniors say that they are happy with the prescription part D, the prescription drug program as it exists.
HUME: Well, that may mean they're happy with the help they're getting, but that doesn't mean they think they're paying fair prices.
KONDRACKE: Well, they're paying lower prices than anybody expected. The average premium was expected to be $34 a month per average Medicare premium it's down to $27 a month.HUME: And this gives them an insurance policy that pays for their drugs?
KONDRACKE: Right, I mean look, what I'm tempted to say and I will say is that, you know, Milton Freedman has passed away in more ways than one. I mean, the Democrats do not belief in the private market -- private competition. The way the Medicare prescription drug plan works is that private insurance companies negotiate formularies with these various drug companies and they have lowered the price.
The Medicare system will not negotiate the price; it will set the price, the way it sets the price for regular Medicare procedures, doctor procedures. And what you have then is government control of the pharmaceutical industry, which is going to be a disaster.
The reason that V.A. prices are lower is, it's basically a socialized medical system. You go to a V.A. doctor, you go to a V.A. hospital, you go to a V.A. pharmacy and the V.A. pharmacies only have 25 percent of the drugs that seniors actually use all the time. So, you know, it doesn't work.
The private market does work. But the Democrats don't believe in it.
This is an issue Republicans can win with the public, and more importantly, can win with voters in the middle where they lost this election. Independents and moderates understand exactly the point Kondracke is making that the private market works better the government when it comes to their health care.
The Democrats will have the PR carrot of lower prices, but if Republicans can credibly counter that the lower prices will come at the expense of the quality of care, and future medical advances, this issue will work well with independent voters they will need to get back in the majority.
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