Can someone confirm this? Is it true that with the new Medicare legislation, the government cannot negotiate lower pharmaceutical prices with pharma companies? This would mean that the largest purchaser of pharmaceuticals in the world has to pay retail price for drugs.

But, alas, that's besides the point - the real problem with Medicare is that it was designed using an actuararial system from 1870.

Back in those days, the European government leaders set up a very successful Medicare-like program and set the magical age of 65 because 95% of the population would never live to that age. Roosevelt saw that success and wanted to replicate it here in the States. He asked his stats guys to make sure that 65 was the right age (you know - small detail - just to make sure we could pay for it). The stats guys came back from their data with 2 thumbs up - 65 was an appropriate life expectancy (except they forgot a few major world events between 1900-1930 that might have impacted life expectancy). And we haven't changed it since.

All that to say is that based on actuararial studies, 92 is the new 65. So, anyone want to propose that we move the Medicare eligibility age to 92?