Latest / The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending
How Government Pays More for Drugs Than Anyone Else
Episode 56 of The Fiscal Policy Podcast with Fexingo examines why the US government—the largest buyer of prescription drugs in the world—pays higher prices than many European countries. Lucas and Luna unpack the legal barrier known as 'non-interference clause' that prevents Medicare from negotiating drug prices, compare it to how the Department of Veterans Affairs negotiates effectively, and explore the Inflation Reduction Act's limited Medicare negotiation provision that takes effect in 2026. They discuss the economics of volume discounts, the role of pharmacy benefit…
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