The federal government may gain the power to negotiate drug pricing with manufacturers on behalf of Medicare beneficiaries when the House votes on a new Democratic proposal next week.

As Medicare Part D finds its footing in the pharmaceutical industry, drug companies are realizing that the government will continue to play a large role in influencing how an important patient population – seniors – chooses medication and how much it costs. The proposal before the House next week dictates that while pricing can be negotiated by the secretary of health and human services, formularies and specific drugs covered can only be decided by private insurance plans.

“Modifications to the current Medicare price negotiation process would mean widespread changes for drug manufacturers,” says Jon Hess, research team leader at Cutting Edge Information. “Rather than dealing with private insurers, pharmaceutical and biotech companies would deal with a federal entity. Companies need to anticipate changes necessary within their core business plan should this proposal be approved in Congress.”

Cutting Edge Information’s report “Managed Markets 2007: Pharmaceutical Reimbursement Strategy, Organizational Structure and Medicare Part D” (http://www.pharmamanagedmarkets.com/), delves into the methods by which managed markets organizations can help educate and adapt their marketing, sales, product planning and brand management teams to Medicare Part D. By anticipating changes rather than sitting back and waiting for others to make them first, pharmaceutical companies can put themselves ahead of the market regarding Part D.

“Managed Markets 2007: Pharmaceutical Reimbursement Strategy, Organizational Structure and Medicare Part D,” outlines how companies need to ensure their Medicare Part D strategies are consistent and fulfilling their strategic purposes during core implementation stages including planning, targeting, marketing, messaging and sales.

To learn more about Cutting Edge Information’s latest managed markets research or to view a summary of this report, visit http://www.pharmamanagedmarkets.com/.

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