BioCentury
ARTICLE | Politics, Policy & Law

Money in your pocket

Why the Trump administration wants to put Medicare Part D rebates in patients’ pockets

February 10, 2018 12:48 AM UTC

Under intense pressure from President Donald Trump to take steps that visibly lower the cost of drugs, HHS Secretary Alex Azar is reaching for low-hanging fruit. The administration’s proposed budget, which will be released on Feb. 12, will include a proposal to hand a portion of drug company Medicare Part D rebates to beneficiaries at the pharmacy counter, and to cap Part D out-of-pocket expenses, according to an administration source.

While these policies are not likely to reduce government spending on drugs and could increase premiums, they are politically irresistible because they visibly slash out-of-pocket costs for senior citizens. In addition, they could be put into practice without legislation, a major consideration given the near impossibility of obtaining congressional consensus on drug pricing -- or anything else...