Eminent Domain for Drug Prices. 3 Key Points to the Argument.

  • Federal Law Says So. The because I said so reason from the government for siezing drug companies patents is rooted in 28 U.S.C. section 1498. 
  • Reasonable Compensation to Pharmaceuticals. Drug companies would get “reasonable and entire compensation”
  • The government doesn’t have to get consent. The government can use any patent without consent so long as the compensation is ” “reasonable and entire.”

The question: does the fear of eminent domain to take drug patents bring about negotiations on drug prices?

Politico | Pulse Check Interview with CMS Administrator Andy Slavitt

The Incidental Economist | Eminent domain for drugs
Health Affairs | ‘Government Patent Use’: A Legal Approach To Reducing Drug Spending