The Health Care Reform Corner – From the editors of "The Pink Sheet"
What are policymakers and stakeholders in Washington saying and doing about health care reform? In this periodic BioPharma Today feature, the editors of "The Pink Sheet" and "The Pink Sheet" DAILY highlight some of the major developments chronicled in those publications.
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WASINGTON, D.C. – The Congressional Budget Office has put a value on the net savings that would accrue to the federal government through drug rebate and discount provisions in the pending House health care reform bill: $48 billion over 10 years.
In H.R. 3200, "America's Affordable Health Choices Act," the main areas where pharmaceutical companies are being asked to help offset the costs of expanded health care coverage are through a rebate on drugs used by Medicare Part D beneficiaries who are also eligible for Medicaid ("dual eligibles"), a 50 percent discount on drugs used by beneficiaries in the Part D coverage gap, and new rebate requirements for Medicaid drugs. The $48 billion net figure reflects these savings, less the cost of closing the coverage gap for beneficiaries. Read the story here...
What's another $20 billion among friends? Biopharma executives had to cringe when, during his July 22 press conference on health reform, President Obama discussed the industry's pledge to deliver $80 billion in savings to help fund the effort. Not only was there a rough edge to his description of the agreement, the President seemingly upped the amount industry may end up having to put on the table by 25 percent.
"You've heard that as a consequence of our efforts at reform, the pharmaceutical industry has already said they're willing to put $80 billion on the table," he said. "Now, why is that? Well, the reason is, because there's probably even more waste than $80 billion, in terms of how the drug plan in Medicare is administered. We might be able to get $100 billion out or more." Read the story here...
The Obama administration's proposal to establish an executive branch advisory council on Medicare payment issues may raise the threat of government negotiations for Medicare Part D drug prices.
The legislative proposal was forwarded to House Speaker Nancy Pelosi July 17 by Office of Management and Budget Director Peter Orszag, who urged that some form of an Independent Medicare Advisory Commission be included in House health reform legislation. Read the story here...
- Scott Steinke
In H.R. 3200, "America's Affordable Health Choices Act," the main areas where pharmaceutical companies are being asked to help offset the costs of expanded health care coverage are through a rebate on drugs used by Medicare Part D beneficiaries who are also eligible for Medicaid ("dual eligibles"), a 50 percent discount on drugs used by beneficiaries in the Part D coverage gap, and new rebate requirements for Medicaid drugs. The $48 billion net figure reflects these savings, less the cost of closing the coverage gap for beneficiaries. Read the story here...
What's another $20 billion among friends? Biopharma executives had to cringe when, during his July 22 press conference on health reform, President Obama discussed the industry's pledge to deliver $80 billion in savings to help fund the effort. Not only was there a rough edge to his description of the agreement, the President seemingly upped the amount industry may end up having to put on the table by 25 percent.
"You've heard that as a consequence of our efforts at reform, the pharmaceutical industry has already said they're willing to put $80 billion on the table," he said. "Now, why is that? Well, the reason is, because there's probably even more waste than $80 billion, in terms of how the drug plan in Medicare is administered. We might be able to get $100 billion out or more." Read the story here...
The Obama administration's proposal to establish an executive branch advisory council on Medicare payment issues may raise the threat of government negotiations for Medicare Part D drug prices.
The legislative proposal was forwarded to House Speaker Nancy Pelosi July 17 by Office of Management and Budget Director Peter Orszag, who urged that some form of an Independent Medicare Advisory Commission be included in House health reform legislation. Read the story here...
- Scott Steinke
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