CBO report asserts Biden bill unlikely to chill innovation
$79B in savings expected from regulating Medicare drug prices
The Congressional Budget Office estimates that more than half of the $297 billion in drug price savings in the Build Back Better Act will come from a budget gimmick, while regulating the price of drugs purchased by Medicare will save the federal government $79 billion over 10 years.
CBO estimated that repealing a Trump administration rule eliminating rebates drug companies pay for favorable placement of drugs on Medicare Part D formularies would save the federal government $143 billion over a decade. The rule, however, has not gone into effect and would have died on its own, regardless of the Build Back Better Act. It was unlikely to survive a legal challenge by PBMs and the Biden administration and congressional Democrats had vowed to kill it over concerns that it would increase Medicare premiums. ...