Monday, June 8, 2020

1.7K Plans Apply for Trump Admin’s Fixed-Insulin-Copay Program for Seniors


The Trump administration on May 26 shared new details about a program that offers diabetic seniors access to a variety of insulin products for a maximum $35-per-month copay.
More than 88 health insurers offering about 1,750 standalone Medicare Part D Prescription Drug Plans and Medicare Advantage plans with prescription drug coverage have now applied to participate in the Part D Senior Savings Model, which CMS unveiled in mid-March. Medicare beneficiaries in all 50 states, the District of Columbia and Puerto Rico will be able to enroll in a participating plan during the Medicare open enrollment period that lasts from Oct. 15 to Dec. 7, 2020, for Part D coverage that begins on Jan. 1, 2021.
That "widespread voluntary participation" from health plans "was essential for the program's success," says Marc Guieb, Pharm.D., a consultant at Milliman, Inc. Still, "many plans were hesitant to participate in the inaugural year of this program due to uncertainty around its financial impact," he says. "It is likely that, in future years, more plans will jump on the bandwagon."
CMS estimates that Medicare beneficiaries who use insulin and join a plan participating in the Part D Senior Savings Model could save an average of $446 annually on out-of-pocket insulin costs, or 66%. Three insulin manufacturers — Eli Lilly and Co., Novo Nordisk Inc. and Sanofi U.S. — have agreed to participate.
On the one hand, the concept of a fixed insulin copay should be attractive to seniors and can improve medication adherence, says Brian Anderson, a principal at Milliman. Still, "the benefit coordination and claims processing is going to be tricky," he suggests, adding that "the pharmacy reimbursements, manufacturer payments, application of the Part D benefit phases and reinsurance will all come into play."
"Overall, this has the opportunity to improve the Part D benefit and drive formulary competition from a cost standpoint," Anderson concludes.
America's Health Insurance Plans (AHIP) gave the program a glowing assessment. "Innovative voluntary programs like this Part D Senior Savings Model are an excellent example of public-private partnerships where everyone wins, but especially patients," AHIP President and CEO Matt Eyles said in a statement released May 26.

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