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Public Plan Drug Negotiations Could Stifle Innovation, J&J Testifies

Executive Summary

While the presence of a public plan in the health care reform debate has been a source of controversy on its own, the pharmaceutical industry has additional cause for alarm because of language in a draft bill that would give the government responsibility for negotiating drug prices for the public plan

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House Bill Would Expand Rx Market, But Negatives Draw PhRMA's Protest

The House health care reform bill contains a number of provisions that would greatly expand the market for pharmaceuticals, but the bill seeks a number of financial concessions from pharmaceutical manufacturers, prompting a statement of protest from the industry association

House Bill Would Expand Rx Market, But Negatives Draw PhRMA Protest

Government negotiation of drug prices for the public plan option and Medicaid-level rebates for dual eligibles (individuals qualifying for Medicare and Medicaid) in Part D would be particularly hard for the industry to swallow.

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