Medicare Drug Negotiation (Essay Sample)

Issue Brief
(Medicare Drug Negotiation (NY))
Name of Student
Affiliate Institution
Issue Brief
(Medicare Drug Negotiation (NY))
Issue statement
The rise in the cost of healthcare has pushed the various policy makers into exploring the most appropriate ways of reducing the financial implications of health without compromising on the quality. So far, two proposals regarding the issue are underway: the federal government to get into negotiations with the companies producing drugs for reduced prices of prescription, and giving the manufacturers allowances to help in providing cheap drugs to the low-income citizens.
Background
Medicare Part D got into full play in 2003; voluntarily prescribing drugs to benefit the various Medicare beneficiaries, in the Medicare Modernization Act (MMA). Indeed, before the passing of this act, Medicare did not engage in the giving of any prescription drug benefit. As outlined by (Hulsey, 2012), Medicare Part D gained full flare in 2006, whereby it actively got involved in the prescription of drugs via the Medicare Advantage plans (MA) and the prescription drug plans that were private. As at 2012, the Medicare Part D plan enrolled over 30 million Medicare beneficiaries, a proportion of about 65 percent (McCurdy, 2014). In accordance to the law, the federal government has no permission to carry out negotiations for the prices within Medicare. However, in the 113th Congress, the stakeholders came up with a legislation meant to allow the HHS involve in the negotiations for a lower prices for the Medicare drugs.
Stakeholders
The key stakeholders are the citizens, the federal government, and the manufacturers of drugs. In the first case, the Secretary of Health and Human Services (HHS) of the United States is to get the authority of negotiating on the prices of the drugs that are highly priced. This, though not acceptable in the current law, is the surest way to help the beneficiaries have access to the drugs. In the second case, the various ...