The Administration has done important work to help lower drug prices, but the recent proposed rule on drug rebates – which would eliminate rebates and undermine the Pharmacy Benefit Managers (PBMs) that play a critical role in reducing prescription drug prices for patients – is a step in the wrong direction for American patients.
Instead of finding real solutions to root out the cause of out-of-control drug prices – price gouging by the pharmaceutical industry – this plan would be the newest Big Pharma bailout – allowing spending to go straight to big drug makers.
These are the facts:
- Premiums will go up 25 percent for seniors and people with disabilities. Premiums for Part D plans will go up 19 percent in 2020 alone – and 25 percent from 2020-2029. Seniors rely on Medicare Part D for their prescription drug coverage – there is no alternative. Higher premiums for 43 million Americans is not a solution to out-of-control drug prices.
- Federal spending – paid with hardworking taxpayers – will increase by nearly $200 billion. The federal government will spend $196 billion more to cover seniors and those with disabilities under Part D. And states and the federal government will pay $2 billion more in Medicaid for prescription drugs. That’s a huge additional burden on hard working Americans.
- Savings that should go to seniors will instead fund a more than $100 billion bailout for Big Pharma. The government’s own actuaries estimate that America’s total drug spending will go up by $137 billion. That’s more money going right into Big Pharma’s pockets.
The truth is – we need market-based solutions that focus on actually lowering drug prices by holding Big Pharma accountable, fostering competition and reinforcing value. Learn more here.
Tell your legislators: Stop the Big Pharma Bailout!
And for a “Dose of Reality” – find out how Big Pharma’s price gouging is causing the drug pricing crisis and impacting patients here.
