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Mia Heck, Director of the American Legislative Exchange CouncilвЂ™s Health and Human Services Task Force has noted that the VA вЂњemploys a process of вЂnegotiationвЂ™ that is founded on restricting access to newer and more effective treatment for veterans. In support of government negotiation, proponents often mention the VeteranвЂ™s Administration as a model of comparison.

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Yet the Congressional Budget Office (CBO) has consistently stated that such a proposal would not score any savings, concluding that the government would not be able to negotiate prices that are more favorable than those obtained by current free market negotiations, unless they were to also restrict access to needed medicines. They continue to press for вЂњmandatory rebates,вЂќ a government price control that could raise the premiums seniors pay by as much as 40 percent.ДЄdditionally, demands for government negotiation of Medicare drug prices were once again included in President ObamaвЂ™s 2017 budget and are a populist theme in presidential campaign rhetoric. Those in the progressive movement remain ideologically opposed to the free market structure of Medicare Part D and are determined to undermine it. As a result of market negotiations between insurers and pharmaceutical companies, in the first decade of program, total Part D costs were $349 billion less than projected estimates вЂ“ an achievement unprecedented for a government program. Medicare Part D has successfully used market mechanisms such as competition and consumer choice to improve access to affordable prescription drug coverage.

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