According to H.R. 3, the Sec. of HHS would be allowed to negotiate rates on at least 50 brand name drugs per year without generic competitors. These rates would then also be available to commercial insurers.
One of the major reasons why drugs are so expensive is R&D. The drug sector is second only to the tech sector in R&D costs as a percentage of revenue. Restricting that revenue can stifle innovation if the drug makers know they won't get their money back which can, in fact, result in shortages if the drug maker restricts the amount they produce in response to losing money. I'm not defending the drug makers, just pointing out that, like any other business, they could scale back in response to decreased revenue.
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