Trump Era Medicare Rule Change Pushed Back to 2023
During his last few months in office, Donald Trump oversaw a change in policies of Medicare Part D that would increase premiums for those with prescriptions for certain “protected class” drugs. These include insulin and antipsychotics, as well as antiretrovirals and immunosuppressants, drugs that are extremely important to the health of those living with HIV.
This rule change was put in to place as part of the haphazard execution of Trump’s promise to lower the prices of prescription drugs. The change has come under from advocates who say that it will have the opposite effect and will end up costing consumers more.
The Biden administration, which has members who have vocally opposed the rule change, delayed the implementation of the rule. The changes, announced in November 2020 and set to take place Jan. 1, 2022, were then delayed again by a court order in a lawsuit by the Pharmaceutical Care Management Association against the Department of Health and Human Services. The rule change has now been delayed to Jan. 1, 2023. Until then, the Biden administration will review the full impact of the rule change.
“The rebate rule was haphazardly finalized and clearly circumvented the proper rulemaking process. Evidence showing that the rebate rule will significantly increase beneficiary premiums and government costs was ignored by the previous administration. The rebate rule should be promptly and permanently repealed,” PCMA President and CEO JC Scott said in a statement.
The policy change was a part of the Trump administration’s implementation of the “rebate rule,” which sought to replace safe harbor protections for drug rebates and replace them with discounts for consumers at the pharmacy. However, opponents of the changes say that discounts for consumers would not be the outcome of the rule change. Instead, insurers would use the rebates to lower premiums and that would then increase the costs for all beneficiaries. HHS actuaries said in February 2019 that the rule would result in a 25 percent increase in Medicare premiums for all seniors. The rule, touted by former Health and Human Services Secretary Alex Azar as “delivering big discounts” to consumers, has seen backlash by several political advocacy associations, who claim this would not be the case.
“While pharma manufacturers would have you believe rebates are a problem and have pushed the administration’s ‘rebate rule,’ time and time again, economists and analysts have found that the rule takes us in the wrong direction by increasing costs and premiums,” Matt Eyles President and CEO of America’s Health Insurance Plans.
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