I promised you in my posting yesterday, President Obama Proposes his Fiscal Year 2014 #Budget, that when I found out some more information about the specifics of President Obama’s proposed budget, especially the Medicaid revisions, I would share them.
It is no real surprise that the President’s budget would place additional burden on the Pharmaceutical and Biotech Industries. PhRMA calls the budget “bad for patients, bad for innovation and bad for the economy,” and said it would undermine Medicare Part D, “a model for success,” while deterring investments in biologics R&D. All signs were pointing that the President’s budget would place additional burden on our industry, the good news is that it would be a miracle if the President’s budget would get passed by the house. But that does not mean that provisions in the President’s budget won’t be used as bargaining chips. The BIO and PhRMA and other industry lobbyists are going to be busy in DC keeping track of these negotiations and I will share any information that comes my way.
Below is an list of how the President’s Budget would make our industry pay:
- Mandating that the Medicare Part D prescription drug program pay the lower Medicaid rates on drugs prescribed to so-called “dual eligibles,” low-income seniors who qualify for both Medicare and Medicaid. That measure would reap an estimated $123 billion in savings over a decade, according to the Office of Management and Budget.
- Hiking Part D manufacturer discounts for branded drugs from 50% to 75% in 2015 in order to close the Part D “Donut Hole” five years early. The Affordable Care Act originally called for the coverage gap—an artifact of an inane Congressional accounting trick—to be eliminated by 2020. Jacking up discounts would save an estimated $11 billion over 10 years, says OMB.
- Pushing generics for low-income beneficiaries by “increasing specified copayments for branded drugs from their current law level,” unless a generic substitute is unavailable, “while lowering specified copayments for generic drugs by more than 15%.” That measure would save an estimated $7 billion over 10 years.
- Banning “pay for delay” agreements (estimated savings: $11 billion), cutting biologics exclusivity from 12 years to 7 and bar biologics ‘evergreening ($3 billion),’ clarifying the definition of brand drugs and excluding authorized generic drugs from AMP calculations on branded drugs ($8.8 billion).
Click here to read the source article.
This is a conversation, not an editorial. Did I forget something, get it wrong or do you agree? Please Comment, Like, Re-Tweet and Share.
- Obama budget cuts Medicare benefits and provider payments (dailykos.com)
- Obama budget squeezes $370B from Medicare (politico.com)
- President Obama Proposes his Fiscal Year 2014 #Budget (ibiojohn.wordpress.com)
- The #PartD Debate (ibiojohn.wordpress.com)