President Trump aims to lower drug cost under Medicare beneficiaries, an administration official said.
President Trump aims to lower drug cost under Medicare by allowing them to share in rebates that drug companies pay to insurers and middlemen.
A senior administration official outlines a plan on condition of anonymity ahead of the release of Trump’s 2019 budget plan next week.
Pharmaceutical companies give concession to insurers and pharmacy benefit managers to help their medications gain a bigger slice of the market.
Drug companies are free to charge what the market will bear, this is the main reason drug costs are so high, Insurers and pharmacy benefit managers says.
The Trump administration’s new proposals come on top of a long list of Medicare changes in the congressional budget deal.
Lawmakers would shift a greater share of Medicare drug costs to the pharmaceutical industry.
They also want to eliminate the drug coverage gap known as the “doughnut hole” one year earlier than currently scheduled, in 2019 instead of 2020.
“On the whole, I think this is a good bill for people with Medicare,” said Joe Baker, president of the Medicare Rights Center, said of the congressional legislation.
The drug industry is criticizing the proposal, saying it will mainly benefit insurance companies that act as middlemen providing the benefit.
“In theory when Medicare spending goes down, premiums would go down,” said Tricia Neuman.
It expands Medicare’s ability to pay for telemedicine in a wide variety of situations.
It also incorporates a bipartisan Senate bill that is planned to improve care coordination for patients with chronic illnesses, such as heart disease, cancer, and diabetes.
The deal would revoke the Independent Payment Advisory Board.
It was controversial from the beginning, and the Obama White House did not move forward to set up the board.