Consumer advocacy nonprofit, Public Citizen, has issued a new study imploring the Center for Medicare and Medicaid Services (CMS) to consider the abuses that caused inflated drug costs for consumers and the government, as the organization begins price negotiations. According to Public Citizen, these abuses resulted in $1 billion in Medicare overspending on just one drug from Amgen Inc.
The nonprofit’s study provides a focused look at a significant issue facing CMS: The high cost of drugs and its impact on consumers and governmental spending. The report sheds light on the alleged role of Amgen Inc., a major biopharmaceutical company, whose single drug – although unspecified in the report – ostensibly resulted in Medicare overspending by a considerable $1 billion.
The report calls for CMS to bear these consequences in mind when entering into price negotiations with Amgen Inc. and potentially other pharmaceutical manufacturers, to avoid repeating history and ensure fair pricing for vital medications.
Public Citizen is known for its diligent work advocating for consumers, highlighting issues of public interest overlooked by other parties. With this recent call to CMS, it hopes to bring attention to the allegedly unfair price inflations in pharmaceuticals, promoting a need for increased scrutiny in drug-pricing negotiations.
To read more about Public Citizen’s study and their call for CMS’ negotiations to reflect past abuses, you can visit the original article on Law360.