Prescription Drug Pricing in the Private Sector

January 2007 Prescription Drug Pricing in the Private Sector The Medicare Prescription Drug Price Negotiation Act of 2007 (H.R. 4) introduced on January 5, 2007, is projected to have a limited ability to reduce federal spending on medications. The terms of H.R. 4 revise the Social Security Act to enable the Secretary of Health and Human Services (HHS) to negotiate with pharmaceutical manufacturers. The limited effect on federal spending is projected to stem from constraints built into the proposed legislation that will prohibit a federal drug formulary and will allow prescription drug plans (PDP) to negotiate separately with . . .