Scribd Logo
Upload

Welcome to Scribd!

  • 10 views

    Fact Sheet - Medicare Drug Discounts-1

    Uploaded by

    bloomingpol
    The document discusses ways that Congress can reduce federal budget deficits by lowering drug costs for Medicare recipients. It argues that the government should use its bulk purchasing power to negotiate lower drug prices for Medicare, as is done for veterans and Medicaid. One proposal estimates this could save taxpayers $156 billion and beneficiaries $27 billion. However, current law prohibits Medicare from negotiating prices. The document supports a bill that would require drug companies to provide discounts for low-income Medicare recipients and dual-eligibles, as was previously done under Medicaid, which could save $141 billion over 10 years. Adopting these discounts would reduce costs without harming beneficiaries and has bipartisan support.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    Fact Sheet - Medicare Drug Discounts-1

    Uploaded by

    bloomingpol
    10 views1 page
    The document discusses ways that Congress can reduce federal budget deficits by lowering drug costs for Medicare recipients. It argues that the government should use its bulk purchasing power to negotiate lower drug prices for Medicare, as is done for veterans and Medicaid. One proposal estimates this could save taxpayers $156 billion and beneficiaries $27 billion. However, current law prohibits Medicare from negotiating prices. The document supports a bill that would require drug companies to provide discounts for low-income Medicare recipients and dual-eligibles, as was previously done under Medicaid, which could save $141 billion over 10 years. Adopting these discounts would reduce costs without harming beneficiaries and has bipartisan support.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses ways that Congress can reduce federal budget deficits by lowering drug costs for Medicare recipients. It argues that the government should use its bulk purchasing power to negotiate lower drug prices for Medicare, as is done for veterans and Medicaid. One proposal estimates this could save taxpayers $156 billion and beneficiaries $27 billion. However, current law prohibits Medicare from negotiating prices. The document supports a bill that would require drug companies to provide discounts for low-income Medicare recipients and dual-eligibles, as was previously done under Medicaid, which could save $141 billion over 10 years. Adopting these discounts would reduce costs without harming beneficiaries and has bipartisan support.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    10 views1 page

    Fact Sheet - Medicare Drug Discounts-1

    Uploaded by

    bloomingpol
    The document discusses ways that Congress can reduce federal budget deficits by lowering drug costs for Medicare recipients. It argues that the government should use its bulk purchasing power to negotiate lower drug prices for Medicare, as is done for veterans and Medicaid. One proposal estimates this could save taxpayers $156 billion and beneficiaries $27 billion. However, current law prohibits Medicare from negotiating prices. The document supports a bill that would require drug companies to provide discounts for low-income Medicare recipients and dual-eligibles, as was previously done under Medicaid, which could save $141 billion over 10 years. Adopting these discounts would reduce costs without harming beneficiaries and has bipartisan support.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    Budget Battles: 2013

    Fact Sheet I April 2013

    Medicare Drug Discounts A Sensible Solution for Deficit Reduction


    As Congress debates reducing the deficit and demanding health savings, one area where Congress can find significant savings is drug costs. The government should use its bulk purchasing power to obtain the best possible price for pharmaceuticals under Medicare, as is currently done for veterans and low-income Medicaid beneficaires. According to a 2008 report by the House Committee on Oversight and Government Reform, taxpayers would save $156 billion and beneficiaries up to $27 billion if Medicare obtained the best price. However, the Medicare Modernization Act of 2003, which created the Part D drug program, explicitly prohibits the government from negotiating lower prices under Medicare. Furthermore, the law transferred the drug benefits of dual-eligibles individuals who qualify for Medicare and Medicaid to Medicare. Under Medicare, dual-eligibles no longer qualify for discounts, forcing the government to pay higher drug prices for these beneficiaries. The law produced windfalls worth billions of dollars for the pharmaceutical industry. Senator Jay Rockeller (D-WV) introduced S. 740, which requires drug companies to provide discounts (rebates) for low-income Medicare beneficiaries and for dual-eligibles, as previously done under Medicaid. The Congressional Budget Office estimates the bill would produce savings of $141 billion over 10 years. Congress should revert back to previous law and close this huge loophole that benefits drug companies and hurt taxpayers. Requiring drug companies to pay rebates for dual-eligibles:

    Saves taxpayers 30% or $141 billion over 10 years. Produces budget savings, without harming beneficiaries. Has the support of President Obama and is included in his budget proposal. Was included in the recommendations of Alan Simpson and Erskine Bowles, the Co-Chairs of the Commission for Fiscal Responsibility and Reform
    April 2013

    815 16 Street, NW, 4 Floor Washington, DC 20006 (202) 637-5399 www.retiredamericans.org

    th

    th

    You might also like