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Congress mulls cap on how much Medicare enrollees pay for drugs
President Donald Trump, Democrats trying to retire him in 2020, and congressional incumbents of both parties all say they want action.
"The issue has my attention," said Sen. Charles Grassley, R-Iowa, chairman of the Senate Finance Committee, which oversees Medicare. "Out-of-pocket costs are a concern of ours, particularly at the catastrophic level." His committee has summoned CEOs from seven pharmaceutical companies to a hearing Tuesday.
Before the hearing, the committee's chairman and top Republican released a joint statement unusual in polarized times: "We agree that the time is now to take meaningful action to lower the cost of prescription drugs in the U.S. health care system," said Reps. Richard Neal, D-Mass., and Kevin Brady, R-Texas.
Generally, the Medicare prescription benefit is financed with a mix of government subsidies and beneficiary premiums. But in the catastrophic portion, most of the bill is passed directly to taxpayers. That neutralizes the incentive for insurers to negotiate lower prices with drugmakers. Catastrophic is the fastest growing cost for Medicare's Part D.
President Donald Trump, Democrats trying to retire him in 2020, and congressional incumbents of both parties all say they want action.
"The issue has my attention," said Sen. Charles Grassley, R-Iowa, chairman of the Senate Finance Committee, which oversees Medicare. "Out-of-pocket costs are a concern of ours, particularly at the catastrophic level." His committee has summoned CEOs from seven pharmaceutical companies to a hearing Tuesday.
Before the hearing, the committee's chairman and top Republican released a joint statement unusual in polarized times: "We agree that the time is now to take meaningful action to lower the cost of prescription drugs in the U.S. health care system," said Reps. Richard Neal, D-Mass., and Kevin Brady, R-Texas.
Generally, the Medicare prescription benefit is financed with a mix of government subsidies and beneficiary premiums. But in the catastrophic portion, most of the bill is passed directly to taxpayers. That neutralizes the incentive for insurers to negotiate lower prices with drugmakers. Catastrophic is the fastest growing cost for Medicare's Part D.
