February 2, 2024

Extortion not negotiating

Extortion not negotiating.

 Drug companies have no choice. They have to accept the governments price cap or pay a large fine. Price caps on Medicare drugs will lead to shortages and/or cost shifting to others. 

The Inflation Reduction Act allows the Federal Governments to force drug companies to accept Medicare prices for drugs 25-65% lower than the previous years prices. Biden calls this “negotiating.” It’s not negotiating it is extortion. It’s a price cap  

When you set a cap on prices it will lead to shortages and or cough, shifting to markets where the prices are not capped. The shortages may be in the actual drug or in the development of new drugs. The capped Medicare prices will result in higher prices for all the others consumers outside of Medicare. 

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