DRUG PRICES: A NEW COVENANT?

摘要

With drug costs soaring, anyone who manages to rein them in will be hailed as a hero. There is no lack of contenders. The latest effort: On Apr. 22, Michigan and four other states won the blessing of the Health & Human Services Dept. to band together and use their combined clout to force pharmaceutical companies to cut prices for their 900,000 Medicaid recipients. Minnesota joined on Apr. 27, and other states are plotting to pile on. The scheme is expected to save each state millions of dollars. But more important, with the new Medicare drug benefit for seniors looming, it raises a crucial question: By using their combined negotiating power, will large buyers' groups have the power to tame drug costs?