Healthcare Economist March 15, 2021
Jason Shafrin

A number of different federal agencies buy prescription drugs. However, the price at which these pharmaceuticals are purchased varies dramatically. To quantify this variation, a 2021 report from the Congressional Budget Office examines the following prices:

  • Medicare Part D: the prescription drug program for Medicare beneficiaries. Prices are set when private insurers (or pharmacy benefit managers [PBMs] operating on their behalf ) and pharmaceutical manufacturers negotiate to determine drug prices under market conditions similar to those facing commercial insurers.
  • Medicaid: The health insurance program for the disadvantaged. Net prices are determined largely by manufacturer rebates that are specified by federal statute reduce drug prices
  • The Federal Supply Schedule (FSS). This program establishes prices available to all direct federal purchasers...

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Topics: Biotechnology, Govt Agencies, Healthcare System, Insurance, Medicaid, Medicare, Patient / Consumer, Pharma, Pharma / Biotech, Pricing / Spending, Provider, Survey / Study, Trends
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