Total reimbursement for brand-name prescription drugs in Medicare Part D increased 77% between 2011 and 2015, nearly six times faster than inflation, despite a 17% decrease in the number of prescriptions, according to a report released today by the Department of Health and Human Services’ Office of Inspector General. The share of beneficiaries with at least $2,000 in annual out-of-pocket costs for brand-name drugs nearly doubled over the five-year period to 7.3%. “Generally, plan sponsors base their reimbursement amounts on the prices that manufacturers set for their drugs,” OIG said. “Therefore, increasing manufacturer prices for brand-name drugs may result in increasing costs for Medicare and its beneficiaries, especially those beneficiaries who need access to expensive maintenance drugs.”

Related News Articles

Headline
The AHA today urged the Centers for Medicare…
Headline
The AHA Friday shared recommendations for developing a unified post-acute care prospective payment system as required by the Improving Medicare Post-Acute Care…
Headline
The Food and Drug Administration Friday released draft guidance on how drug developers can apply for the agency’s Competitive Generic Therapies designation.
Headline
The Centers for Medicare…
Headline
Senate Finance Committee Ranking Member Ron Wyden, D-Ore., along with several other Democratic senators, yesterday introduced bills aimed at increasing…
Headline
The Department of Health and Human Services’ Center for Medicare and Medicaid Innovation today announced a new payment model for emergency ambulance services…