question on Medicare Drug Program - effect of cost of paying full price for drugs

[rurallib]

I was trying to find some info on the cost of the government paying full price for drugs that are bought by those enrolled in the Medicare part D versus costs for other programs where volume prices are negotiated (eg the VA).
It would seem pretty obvious that there would be a great place to drastically cut the cost of Medicare - yet, much like raising taxes on the rich, it is never mentioned.
I know Obama made some deal with big Pharma, but I'd think breaking this deal would be worth it.
When I try to google this all I get is a load of Medicare drug plans.

How much would Medicare save annually if they were able to negotiate prices of drugs?

[pinto]

1. Found these tidbits -

As of the end of year 2008, the average annual per beneficiary cost spending for Part D, reported by the Department of Health and Human Services, was $1,517,<18> making the total expenditures of the program for 2008 $49.3 (billions).

By the design of the program, the federal government is not permitted to negotiate prices of drugs with the drug companies, as federal agencies do in other programs. The Department of Veterans Affairs, which is allowed to negotiate drug prices and establish a formulary, pays 58% less for drugs, on average, than Medicare Part D.<25> For example, Medicare pays $785 for a year's supply of Lipitor (atorvastatin), while the VA pays $520.

http://en.wikipedia.org/wiki/Medicare_Part_D

(aside) For the record, the bill was passed in the infamous midnight Republican vote switch in 2003, signed by then President Bush and went into effect in 2006.

[rurallib]

2. thanks very much