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In his editorial in the December issue, Jim Guest advocates having the government negotiate drug prices for all Medicare recipients as a way of lowering prices. Having a single buyer for all Medicare beneficiaries would undoubtedly lower drug prices a lot. But just as it is undesirable to have only one seller who dictates prices for a class of products, so it is also bad policy to have just one large buyer. The problem is that it is drug company profits that pay for research and development of new and improved medicines. There is a tight connection between price, profits, and new drugs. Push down prices and you'll get fewer new drugs, or maybe none at all.
STEVE ROSENBERG
CASTRO VALLEY, CA
Medicare Part D, the drug plan that goes into effect in January 2006, is cumbersome and exceedingly difficult for individuals to navigate. Savings are not great, and drug prices can be raised and the formulary changed by the provider at any time. Consumers Union,AARP, and individuals should pressure Congress to scrap the program and to substitute a plan in which Medicare negotiates directly with drug companies, as the Veterans Administration does. A lot is at stake, and it's worth making the ...