Click here to watch Rep. Michael Burgess describe an important new study by Manhattan Institute senior fellow Dr. Benjamin Zycher on the House Floor, 01-12-07!
Experts from the Center for Medical Progress at the Manhattan Institute have been at the forefront of the debate over prescription drug costs ever since the first Medical Progress Report in 2004, Are Drug Price Controls Good for Your Health?.
In 2005, the Center for Medical Progress followed up on the success of their report by releasing a new study: Older Drugs, Shorter Lives? An Examination of the Health Effects of the Veterans Health Administration Formulary.
House Speaker Nancy Pelosi is now promising to impose federal government negotiations of Medicare prescription drug prices during Congress' first 100 hours and the Center for Medical Progress has proudly released a new report to critique this proposal.
The first 100 hours are now upon us and Manhattan Institute scholars are well-equipped and ready to rebut Pelosi's proposal with hard facts and figures.
Dr. Benjamin Zycher , economist and senior fellow at the Center for Medical Progress, is a leading expert on the danger of government negotiated prescription drug prices.
While Speaker Pelosi continues to advocate negotiated drug prices under Medicare Part D, Dr. Zycher reveals startling statistics on the long-term burdens of this measure!
In his new study, The Human Cost of Federal Price Negotiations: The Medicare Prescription Drug Benefit and Pharmaceutical Innovation, Dr. Zycher finds. . .
If federal price negotiations were implemented in 2007:
- The cumulative decline in research and development investment from 2007 through 2025 is predicted to be $196 billion.
- About ten new medicines would be lost every year.
- Approximately five million life-years would be lost annually in America, valued conservatively at $500 billion a year - far more than total annual spending on drugs.
** Over 50 scholars urged Congress to reject drug price negotiations
letter to The Hill, 1-10-07
SELECTIONS FROM THE PRESS:
Little Big Pharma
Wall Street Journal, Editorial
A new study by economist Benjamin Zycher (published by the Manhattan Institute) estimates that any apparent savings from having Medicare "negotiate" drug prices would be more than wiped out by the cost in "life-years" lost from a decreasing number of new, beneficial drugs. Let's hope the new Democratic Congress can recognize the importance of fostering research when it takes up Medicare policy and FDA reauthorizing legislation next year.
Pelosi and Pfizer
Investor's Business Daily, Editorial
Economist Benjamin Zycher of the Manhattan Institute think tank said shifting Medicare to a VA-style purchasing program would cut $196 billion from the drug industry's research and development from 2007 to 2025. This translates to fewer new drugs and, Zycher said, a cost in America's longevity totaling 5 million life-years annually.
A Medicare Gamble?
Chicago Tribune, Editorial
If the feds were able to wring huge discounts from drugmakersbeyond what private companies get nowone major unintended consequence would likely be fewer new drugs coming to market, according to economist Benjamin Zycher. . . Drug companies would lose the incentive to invest in research. "The longer-term human costs of government price negotiation ... are likely to be large and adverse," Zycher wrote. How large? American life expectancies would grow more slowly, he said. Measured in dollars, the economic magnitude of that loss would be greater than total annual U.S. spending on pharmaceuticals, he concluded.
New York Sun, Editorial
A report released last month by the economist Benjamin Zycher, a senior fellow at the Manhattan Institute, which receives some funding from drug companies, disclosed previously unpublished projections from the federal government that the federal government will account for more than 40% of all the medicine-buying in America. . . Mr. Zycher's study projects that it would produce a decline in investment in new drug research and development of about $10 billion a year, costing a loss of 5 million expected life-years annually.
Click here to read the full report!
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