Pharma to get another bite at the donut hole

A $1.3 trillion omnibus budget deal under consideration in Congress is likely to include some relief for drug companies from the billions in costs that were shifted to the industry as part of a two-year budget deal that was signed into law in February, according to pharma industry lobbyists.

That law, which raised spending caps, closed the Part D Medicare coverage gap, or donut hole, in FY19. The donut hole was previously scheduled to be closed in FY20. The law pays for the change by increasing the discount drug manufacturers provide to patients in the donut hole to 70% from the current 50% rate. The increased discount, which is slated to go into effect on Oct. 1, would add about $40 billion in costs to drug companies over a decade (see BioCentury, Feb. 23). ...