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 Trump administration today announced steps drug manufacturers must take to lower prescription drug prices in the U.S. to "most favored nation" pricing, the…
Headline
The Department of Health and Human Services today issued a notice announcing a 340B Rebate Model Pilot Program as a voluntary mechanism for qualifying drug…
Chairperson's File
Public
The recently enacted One Big Beautiful Bill Act will bring big changes to health care. AHA President and CEO Rick Pollack joined me for a Leadership Dialogue…
Headline
The House Ways and Means Subcommittees on Health and Oversight held a joint hearing today to discuss lessons learned, challenges and opportunities to improve…
Headline
The AHA today expressed support for the Medicare Mental Health Inpatient Equity Act, a bill that would eliminate the 190-day lifetime limit on inpatient…
Headline
The AHA July 8 wrote in opposition to the “Patient Access to Higher Quality Health Care Act” (H.R. 4002), which would repeal current law banning the creation…