There is a rumored proposal in the works that could harm Medicare Part D and the seniors that rely on this critical program. This proposal would harm Medicare by applying a government-imposed inflation rebate on Part D medications that could negatively affect the program’s successful market-based structure.
By unnecessarily inserting government-imposed inflation rebates, this policy would violate the spirit of the non-interference clause, which has allowed competition between Part D plans to hold down costs and has been key to Part D’s success since its inception. This penalty could also raise premiums for beneficiaries, as this type of change has the potential to eliminate the privately negotiated price protection rebates that are currently used to subsidize premiums.
Not only would this type of proposal undermine the success of the Part D program, but it could also reduce the incentive for future innovation in health care. Inflicting such a policy on Part D medications could have the harmful consequence of discouraging future investment in medical research, harming beneficiaries, especially those with chronic or complex conditions who rely on the program to access new break-through cures.
There are numerous proposals that, if enacted, would serve to meet the needs of seniors. This is not one of them. It is critical that you act NOW to tell your Member of Congress that these cuts to Medicare through government-imposed inflation rebates are the wrong way to lower Part D costs. Join us TODAY in making our voices heard by clicking here!