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A Major Overhaul of Prescription Drug Prices

The Daily

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Medicare's Non-Interference Clause

President Bush calls for Congress to pass a Medicare prescription drug bill, but faces opposition. House bill relies on private insurance plans, angering Democrats. Negotiations result in an expansion of Medicare to cover prescription drugs, but with a catch: the non-interference clause prevents the government from directly negotiating drug prices. Medicare is unable to use its bargaining power to drive down prices, creating a sprawling system of individual insurers.

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