Today’s action by the Administration is poorly timed and ill-conceived and is unlikely to withstand legal or political scrutiny. As both the Centers for Medicare & Medicaid Services’ Office of the Actuary and the Congressional Budget Office (CBO) have shown when the Administration originally put this forward, eliminating or curtailing the availability of rebates to lower drug prices will result in significantly higher premiums for Medicare Part D beneficiaries, enormous increases in costs to the American taxpayers, and a windfall to pharmaceutical companies at a time when every American is struggling to navigate the COVID-19 pandemic.
More than ever, America’s senior citizens deserve stability and peace of mind when it comes to their health care and what they pay for their coverage. Finalizing this action will do nothing to reduce overall out-of-pocket costs for Part D beneficiaries. Instead, it will increase costs for taxpayers and give the pharmaceutical industry an undeserved and significant financial handout as they continue to report record profit.
According to the CBO’s original analysis, the Administration’s action would cost taxpayers $177 billion.
For more information about this issue and its ramifications for seniors, see the Pharmaceutical Care Management Association.