Baucus investigates device-maker's pricing strategy

“Medtronic cancelling these contracts could considerably undermine our efforts to reduce health care costs and increase transparency for consumers and taxpayers,” Finance Committee Chairman Max Baucus (D-Mont.) said in a statement. “Medicare spends billions each year on medical devices for patients and we need to make sure these patients, and the taxpayers, are getting the highest-quality products at the best price.”

In a letter to the company’s chief executive, Baucus asked for records related to the canceled contracts, including any internal estimates of the effect on product prices. He also requested a list of all canceled contracts since 2000 and whether Medtronic plans to cancel any further contracts in the next two years.