Caitlin Owens July 7, 2019
A group of
senators is considering a plan to limit how much drug companies can raise their
prices in Medicare's prescription drug benefit, among other changes.
The big
picture: Some of the proposals would majorly restructure the way Medicare
pays for drugs and are sure to draw massive industry pushback — if
lawmakers can even agree to them.
Driving the
news: Senate Finance Committee Chairman Chuck Grassley and the
committee‘s top Democrat, Ron Wyden, have been negotiating a drug price
package. Grassley briefed Republican members yesterday on the discussions.
- There's general
agreement on a handful of measures, two Senate aides familiar with the
negotiations said, including restructuring how Part D's catastrophic phase
is financed, capping seniors' out-of-pocket costs and limiting price
increases in Part B to the inflation rate.
- Drug companies
— which currently don't pay any portion of the catastrophic phase
— would be on the hook for some of it, but it's not yet clear how
much, according to the aides and a senator who was in yesterday's meeting.
Yes, but: Limiting price
increases in Part D to the inflation rate is more controversial, as is a
proposal to allow Medicaid to pay for gene therapies over
time and based on their outcomes.
- "I don’t think you
have to do government-required pricing, or price baking, to be able to
control costs," said Sen. Johnny Isakson.
Administration
officials, including HHS Secretary Alex Azar and the head of the Domestic
Policy Council, Joe Grogan, attended yesterday‘s meeting.
- "The White House
and HHS are unified in support of what Chairman Grassley is doing to help
protect seniors from outrageous drug prices, improve Medicare for the long
haul, and take needed steps forward in how Parts B and D operate," a
senior White House official said.
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