Report Finds Significant Catastrophic Liability for Drug Makers Benefits Seniors, Taxpayers
For Immediate Release
Contact: Jon Conradi
Washington, D.C. – The Campaign for Sustainable Rx Pricing (CSRxP) said Tuesday that a new study from Oliver Wyman analyzing different cost sharing scenarios underscores the critical need to hold Big Pharma accountable in Medicare Part D reform.
“Without more skin in the game, Big Pharma would have every incentive to continue price gouging the medications seniors need to survive, resulting in higher premiums for beneficiaries and tremendous cost for taxpayers,” said CSRxP executive director Lauren Aronson. “This study confirms that holding Big Pharma sufficiently accountable for costs incurred in the catastrophic phase is a win for both seniors and taxpayers – worth up to $114.8 Billion.”
“A reform that caps out-of-pocket costs but doesn’t shift significant catastrophic liability to drug makers, would result in higher premiums, rising taxpayer costs and a bailout of Big Pharma in the form of reduced discount payments,” Aronson added. “As lawmakers in Congress weigh options to reform the Part D program, it is critical they hold Big Pharma accountable to protect seniors and taxpayers.”
The Oliver Wyman study, titled “Part D Catastrophic Coverage – Financial Implications of Restructuring to Include Manufacturer’s Liability,” modeled four different scenarios for Part D cost sharing in the catastrophic phase. The modeled scenarios explored manufacturer liability ranging from 31.7 to 50 percent – significantly higher than the 9 percent suggested by American Action Forum (AAF).
The study found:
The full Oliver Wyman study can be found HERE.