Government-Imposed Inflation Rebates Are the Wrong Way to Lower Medicare Part D Costs

Rumored proposals being considered in Congress would institute a government-imposed inflation rebate on Medicare Part D medicines, which would put the program’s successful market-based structure at risk. For seniors who rely on the program to access innovative medications, this is unacceptable.

 · Medicare Part D premiums 2006: $92.30

 · Medicare Part D premiums 2019: $51.28

Why would Congress want to stop this progress by eroding Medicare's market-based structure?

Part D plans already negotiate price rebates that require manufacturers to pay rebates when their prices increase above a set threshold. If a government-mandated inflation rebate has the effect of these rebates going to the government instead of to plans, it will likely cause premiums to increase because those privately negotiated rebates are currently being used to subsidize premiums.

Even more problematic: Inflation rebates to the government would amount to raiding Medicare to channel funds into pork-barrel projects.

It is astonishing that Congress is considering raiding Medicare to pay for government pork!

Instead of disrupting the successful, market-based structure that we currently enjoy with Medicare, Congress should come up with proposals that truly help seniors better afford their medicines.

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