The Senate drug agreement would require the Health and Human Services Secretary to “negotiate” prices for 10 of the top-spending drugs in Medicare starting next year and 20 by the end of the decade. If drug makers don’t accept the government’s offered price, they would get slapped with a 95% excise tax on their sales. Take his offer or else.Wall Street Journal 7-28-22
Once the negotiation process is established, it will be far easier for Democrats to expand the list of covered medicines to meet whatever their next spending goal is. This time around Democrats plan to use the $200 billion or so in drug savings to extend sweetened Affordable Care Act (ACA) subsidies for three years and cap Medicare Part D out-of-pocket costs at $2,000.Wall Street Journal 7-28-22
Opponents of this sham negotiation is say it will stifle new drug innovation. To what extent we don’t know, but there will be consequences. What happens the next time enhanced ACA subsidies are about to expire? By then millions of Americans have gotten used to the fake premiums they are paying and there will be another excuse to extend them – another new revenue source needed or perhaps just higher debt.