Should the government negotiate the prices of pharmaceuticals covered by the new Medicare Part D prescription drug benefit? The incoming Democratic leadership in Congress has made Medicare price negotiation a top policy priority, but controversy rages over precisely what that might entail and whether it would reduce drug costs in Part D. Supporters of government negotiations point to the success of the U.S. Department of Veterans Affairs (VA) in obtaining low prices, but critics argue that Medicare would not do better than the current system of allowing private drug plans to make their best deal.

Johns Hopkins professor Gerard Anderson will outline Democratic policy options and draw upon lessons from government price negotiations in other countries. Michael Valentino, pharmacist and chief consultant to the VA’s Pharmacy Benefits Management Strategic Healthcare Group, will explain the VA system of price negotiation. Mark McClellan, former administrator of the Centers for Medicare and Medicaid Services, will address the success of private plan negotiations in Part D. Joseph Antos, a former Congressional Budget Office official, will raise concerns about the feasibility of drug price negotiations and likely budget savings.