Legislation would undermine USA's Medicare Part D, argues PhRMA

Several members of the US Congress this week echoed President Barack Obama’s recycling of a “flawed policy proposal: imposing mandatory government price controls in Medicare Part D, cleverly disguised as rebates,” according to industry lobby group Pharmaceutical Research and Manufacturers of America (PhRMA) senior vice president Matthew Bennett.

His comments were made as the Medicare Drug Savings Act was introduced into the US Senate by a group of 19 Democrat Senators, and a companion bill in the House is sponsored by five Representatives. They point out that, with the exception of Medicare Part D, all large US purchasers of prescription drugs negotiate better prices, including Medicaid, and their bills would simply restore negotiated prices for these "dual-eligibles," who are predominantly low-income seniors and people with disabilities.

Mr Bennett’s statement continued: “But unlike familiar consumer rebates that return savings to shoppers, this policy would undermine a successful and popular program, sending ‘rebates’ to the Federal Treasury, not seniors. The reality: analysts predict that this proposal would bring higher premiums and co-pays, more restricted access to medicines for seniors and Americans with disabilities, and diminished research on the next generation of medicines.