Benefit Cuts or Drug Discounts?

February 15, 2013 at 12:24 am Leave a comment

According to a 2012 Congressional Budget Office report, aligning Medicare drug payments with what Medicaid pays just for low-income beneficiaries would save $137.4 Billion over ten years. (CBO Estimates for President’s Budget for 2013, 3/16/2012).

While the President suggested this reform in his State of the Union address, discounting what Medicare pays for drugs has thus far not been taken seriously by decision-makers.

Instead, we have repeatedly been told that Medicare cannot be sustained and that benefit cuts are necessary. Yet all these Medicare benefit cuts combined would only equal $35.4 Billion in savings over ten years:
1. Increasing income-related Part B premiums;
2. Increasing income-related Part D premiums;
3. Increasing Part B deductible for new enrollees;
4. Adding a Part B premium surcharge for first-dollar Medigap coverage;
5. Adding home health co-pays for new enrollees.

If all of these benefit cuts, that would hurt older and disabled people, save only 25% of the savings that would be achieved by requiring drug companies to give the same discounts to Medicare as it gives to Medicaid, why don’t we choose drug discounts? How can benefit cuts be preferable if the goals are to reduce the deficit and save Medicare for future generations?

Lower Medicare payments for prescription drugs. Choose People and Medicare over PRxOFITS!

Entry filed under: Cost-sharing, Deficit Reduction, Drug Costs, Fiscal Responsibility, Medicare, Medicare Reform, Myths, Uncategorized. Tags: , , , , , .

Medicare Shoppers: Pay Less for Rx! Not Saying We Told You So …

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