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Government Officials and PhRMA Attempt to Fill the ‘Donut Hole’
By
Stephen J. Baetge
Staff Writer
Buying
needed medications may soon become easier for America’s financially-pressed
seniors as the Pharmaceutical Research and Manufacturers of America
(PhRMA) announced its commitment to support legislation to cut prescription
drug prices by 50 percent for seniors who fall into the Medicare
Part D Prescription Drug Program coverage gap, “the donut-hole.”
“PhRMA is committed to working with the Administration and Congress to
help enact comprehensive health care reform this year,” jointly stated
PhRMA president and CEO, Billy Tauzin, and PhRMA Board Chairman David Brennan,
CEO, AstraZeneca. “Every American should have access to affordable, high-quality
health care coverage and services.”
As part of its commitment to health care reform, PhRMA is supporting legislation
that addresses the Medicare donut hole, which has been a target for senior advocates
and Medicare critics since it went into effect in 2006.
Part of the proposed legislation includes an agreement by American pharmaceutical
research and biotechnical companies to help close the coverage gap by providing
a 50 percent discount to most Medicare beneficiaries on brand-name medicines
covered by Medicare Part D when purchased in the coverage gap.
Additional provisions would count the entire negotiated price of the Part D-covered
medicine purchased in the donut hole toward the beneficiaries’ out-of-pocket
costs — lowering their total out-of-pocket spending.
A key feature of the proposal is that it does not require additional paperwork
on the part of the beneficiary. There is also no asset test for eligibility.
The action by the pharmaceutical industry is expected to reduce its draw on the
health care system by $80 billion over the next 10 years as part of overall health
care reform.
“This commitment to support legislation that will help close the coverage
gap reflects our ongoing work with Congress and the Administration to make comprehensive
health care reform a reality this year,” Tauzin declared.
Senior advocates praised the cooperation between government officials and the
drug industry.
“That’s a 50 percent reduction in drug costs,” observed AARP
CEO, A. Barry Rand.
“Too many Americans who fall into the coverage gap stop taking their medications
because they simply cannot afford them. They will now have a new opportunity
to lead a healthier life,” he added.
Thair Phillips, president of RetireSafe, a grass-roots senior organization, called
the commitment “a huge gift to older Americans caught in this much-discussed
Medicare coverage gap.”
“This $80 billion pledge should directly benefit seniors on Medicare at
a critical time in their lives,” Phillips noted. “Medicare beneficiaries
who land in the Part D doughnut-hole are forced to spend as much as $4,350 in
total out-of-pocket drug costs until the catastrophic coverage kicks in. This
will mean better, more affordable health care for seniors, thanks to PhRMA and
its member companies.”
“While the president and others have been quick to pledge huge cuts to
Medicare services to pay for health care reform, something that will clearly
hurt the elderly, this commitment directly assists Medicare beneficiaries, and
we appreciate it,” Phillips concluded.
Further actions to reduce Medicare beneficiary costs are expected to continue
as part of the Obama administration’s efforts to reform th01e nation’s
health care system.
This page and its contents ©2009
Metropolitan News Company, Inc.
