US government seeks to negotiate Medicare prices of high-cost medicines

The Obama Administration wants to win the authority to negotiate over the prices of specialty drugs for recipients of Medicare, the federal government program that providers health coverage to the elderly, according to US media reports.

President Barack Obama on Monday called for government to use its buying power to squeeze drug companies for lower prices. The request came as part of the $1.08 trillion budget submission for the Health and Human Services Department for fiscal 2016, which would give the HHS the ability to negotiate drug prices for biologics and other medications in Medicare Part D.

"I think it's something we believe will help with the issue of drug prices," HHS Secretary Sylvia Burwell said during a briefing with reporters, reported by The Hill. Secretary Burwell added that the Administration would work with Congress to establish that authority.