Americans pay far higher prices for prescription drugs than do people in other wealthy countries. The reason that other countries spend so much less on drugs is that their governments negotiate prices with the pharmaceutical industry. The United States government could adopt the same approach...

When Congress was debating the Medicare drug benefit in 2003, there were many who advocated that Medicare provide the benefit as part of the traditional hospital insurance program. This was expected to save money both due to lower administrative costs and also as result of Medicare’s ability...