By Scott Gottlieb (Original source AEI)
“Senior citizens are facing increasing and often significant burdens from rising out-of-pocket costs on drugs that they need to improve their health while many observers worry about the long run stability of the Part D program. As part of the Prescription Drug Pricing Reduction Act (PDPRA), the Senate Finance Committee is considering two significant reforms to the Medicare Part D program aimed at reducing overall program outlays and beneficiary out-of-pocket spending. Most notably, the proposal would substantially redesign the structure of the Part D benefit to encourage more efficient management of drug spending and reduce incentives that encourage rapid growth of list prices. In addition, it would establish mandatory rebates in Medicare Part D if list prices on drugs grow faster than the rate of inflation (as measured by CPI-U) to reduce enrollee out-of-pocket spending.”
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