CSRxP Statement on HHS OIG Part D Spending Report

Jun 4, 2018

Today, the Office of the Inspector General at the Department of Health and Human Services (OIG) released a report entitled, “Increases in Reimbursement for Brand-Name Drugs in Part D.

The OIG found that, over the course of five years, after taking rebates and discounts into account, spending by Medicare Part D on brand-name medications rose by 62% despite a 17% decline in the number of prescriptions written. The report also found that brand-name inflation outpaced CPI inflation by 600% over that same period (29%), while the average cost of the 200 most-prescribed drugs rose by more than 1,000% of CPI inflation (57%).

CSRxP spokesman Will Holley released the following statement on the OIG’s report:

“Today’s report from the OIG is clear evidence that increased spending on prescription drugs by beneficiaries and taxpayers is caused by the out-of-control list and launch prices that are set by brand-name drug manufacturers alone.

“The Inspector General’s conclusion does not leave room for debate: ‘we conclude that increases in unit prices for brand-name drugs resulted in Medicare and its beneficiaries’ paying more for these drugs.’

“The problem is the price, and consumers and taxpayers will continue to bear the burden of relentless price hikes and anticompetitive tactics until the root cause of this crisis – manufacturer-set list prices – is addressed.”