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Low Part D Premiums Can’t Last If Rebate Rule Finalized
The administration's rebate rule will undermine negotiations that have secured savings for seniors.
Last night, CMS announced that the average basic premium for Medicare Part D prescription drug plans will be $30.50 in 2021—among the lowest since 2013. But the administration will likely see a sharp reversal if it finalizes its “rebate rule,” which will undermine the very negotiations that secure these savings for seniors.
For decades, health insurance providers have been an enthusiastic partner of the federal government—negotiating with drug makers for lower costs for seniors and taxpayers, increasing access to much-needed medications, and achieving high levels of satisfaction among the seniors they serve. They eagerly supported CMS’ Part D Senior Savings Model, which is helping to make insulin even more affordable for enrollees. And health insurance providers continue to ensure that seniors have access to their medications throughout the coronavirus disease 2019 crisis.
As Americans’ bargaining power, we will continue to negotiate hard to make drug coverage more affordable for Americans. But the rebate rule would take us in precisely the wrong direction.
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