jimntx I do not know if a law exist baring the government from negotiating with pharmaceutical companies. I would like to see proof of that claim. To my knowledge government has always gone with the lowest bidder. Second most of pharmaceutical purchases are made either through private individuals or private entities (insurance companies). I think (my opinion) it is more likely that insurance itself is responsible for this mess we are in. Health Care corporations (pharmaceuticals, hospitals, medical device manufactures) see insurance as a nice big pool of money to exploit. Health Care was not always so outrageously priced.
Will this do?
From a casual selection from multiple Google references...
"In 2003, Congress and President Bush enacted the "Medicare Prescription Drug, Improvement and Modernization Act," which established a prescription drug program for Medicare. That legislation expressly prohibited Medicare from negotiating drug prices with pharmaceutical companies."
On more than one occasion in the past 4 years, the Obama administration has attempted to repeal that prohibition. The insurance company and pharmaceutical company lobbies have made sure that the legislation to repeal has never even gotten out of committee in the Republican-controlled House of Representatives.