Fact Sheet

How Successful Negotiation Takes Place in Medicare

PhRMA September 22, 2015

#MedicareMonday is continuing to take a closer look at proposals that could hurt the success of Medicare Part D. This week we’re talking about proposals to repeal the non-interference clause in Medicare Part D.

What is non-interference? From the beginning, the law creating Medicare Part D includes a provision called the non-interference clause; it prohibits the Secretary of Health and Human Services from interfering in the private price negotiations between Medicare Part D plans and drug manufacturers and pharmacies in the program, and prevents the Secretary from establishing a single formulary for the program.

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