In 2017, Medicare spent nearly $8 billion on insulin alone -- and according to new research, if Medicare were allowed to negotiate drug prices like the U.S. Department of Veterans Affairs can, it could save about $4.4 billion on the life-saving drug.
, you probably haven't paid much attention to its skyrocketing cost, but new research shows that exorbitant drug pricing eventually affects everyone.spent nearly $8 billion on insulin. The researchers said that if Medicare were allowed to negotiate drug prices like the U.S. Department of Veterans Affairs can, Medicare could save about $4.4 billion"Medicare now accounts for a third of all drug spending.
The VA already has the ability to get discounts on drugs and to negotiate prices. It has also established a national formulary. A formulary is a list of drugs that are approved for treating certain conditions. Feldman said if a formulary only accepts a few drugs for each condition, there's more competition and flexibility in pricing as companies try to get their drug included.
If Medicare could use VA pricing and a national formulary, the projected savings would be $4.4 billion, the study found. "The evidence indicates that formulary restrictions and price negotiations can decrease the cost of drugs," he said."There are opportunities for the federal government to save billions of dollars each year for Medicare beneficiaries."
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