President Biden just released his budget plan for the next fiscal year. It purports to extend Medicare’s solvency by decades and reassure the millions of Americans who rely on the program.
But once they realize his approach will grind drug research to a halt, perhaps they’ll come to a different conclusion.
The president says he’ll reduce Medicare’s costs by expanding a provision in last year’s Inflation Reduction Act that authorizes the program’s officials to “negotiate” — that is, demand with the force of law — lower drug prices from pharmaceutical companies. This, he claims, will save billions of dollars that can be plowed back into Medicare.