Tuesday, July 16, 2024

HHS Lowers Prices on 64 Prescription Drugs Under Medicare Rebate Program

Similar articles

Starting in July, Medicare enrollees will benefit from reduced prices on 64 prescription drugs, a change that will remain in effect through the end of September. This adjustment comes as part of a response to drug companies raising prices at rates faster than inflation, the Centers for Medicare & Medicaid Services (CMS) announced on Wednesday.

This price reduction initiative is part of the Inflation Reduction Act (IRA), which aims to make medications more affordable for seniors. The latest round of discounts targets drugs used to treat conditions such as osteoporosis, cancer, and infections. According to the CMS, this measure could result in savings of up to $4,593 per day for more than 750,000 Medicare enrollees.

The announcement has become a quarterly event, providing the Biden administration with an opportunity to highlight its efforts to lower drug prices and protect seniors from steep price hikes. “Without the Inflation Reduction Act, seniors were completely exposed to Big Pharma’s price hikes. Not anymore,” stated Neera Tanden, the White House domestic policy adviser.

Prescription Drug Price Cuts Include Padcev and Crysvita Amid IRA Controversy

Among the medications included in this round of price cuts are Padcev, used to treat bladder cancer, and Crysvita, which addresses a genetic disorder that impairs growth. The administration noted that Padcev’s price has increased faster than the inflation rate each quarter since the Medicare Part B inflation rebate program was established. The IRA also includes provisions to cap out-of-pocket prescription drug costs at $2,000 starting in 2025. This cap is part of a phased implementation designed to gradually reduce the financial burden on Medicare enrollees.

However, the IRA has faced opposition from conservative groups and some political adversaries of President Biden. Critics argue that price controls could stifle innovation and reduce the pharmaceutical industry’s ability to develop new treatments. Recently, Republican lawmakers received a letter urging Congress to repeal the drug pricing provisions of the IRA, as reported by Axios.

Liz Zelnick, director of economic security and corporate power for Accountable.US, responded to these criticisms, saying, “Any vote in Congress to repeal this historic law is a vote to let big drug makers keep price-gouging seniors, including many who often choose between food and medicine.”

Prescription Drug

PhRMA Donates $1 Million to Oppose IRA’s Prescription Drug Pricing Measures

PhRMA, a prominent lobbying group for the pharmaceutical industry, has contributed nearly $1 million to conservative organizations that support repealing the IRA’s drug pricing provisions. This information was detailed in a recent analysis by Accountable.US, a nonpartisan government watchdog organization that aims to hold special interests accountable and drive progressive change.

The Biden administration continues to argue that federal agencies, staffed with subject matter experts, are best equipped to manage and implement these changes to protect consumers. The administration believes that the expertise within these agencies is crucial for interpreting and resolving statutory ambiguities in ways that best serve public health.

You can follow our news on our Telegram and LinkedIn accounts.

As the IRA’s drug pricing measures take effect, the administration is hopeful that these changes will lead to a more equitable and sustainable healthcare system. The goal is to ensure that seniors and other vulnerable populations have access to necessary medications without facing prohibitive costs, ultimately improving public health outcomes across the nation.

 

Resource: Fierce Healthcare, June 26, 2024

Subscribe to our newsletter

To be updated with all the latest news, offers and special announcements.

Latest article