Pharmaceutical Companies to Cut Medicare Prescription Costs By $80 Billion, Helping Assisted Living
The country's leading pharmaceutical industry group has agreed to cut
Medicare prescription drug prices by $80 billion over 10 years.
President Obama announced it Monday at the White House.
The funding will help to narrow the so-called "doughnut hole,"
according to the Pharmaceutical Research and Manufacturers of America
(PhRMA). The doughnut hole is the gap in Medicare Part D coverage when
seniors are responsible for the total cost of drugs. As part of their
investment, drug companies will cover up to 50% of the cost of
brand-name drugs that fall within the doughnut hole. The new deal would
largely benefit lower-income Medicare recipients-one industry official
noted. The entirety of prescription costs would also count towards
out-of-pocket expenses, meaning insurers would pick up more of the tab.
Standing with Obama at the event, AARP's chief executive Barry Rand
told reporters the $80 billion contribution to healthcare cost
reductions was "an early win for reform." Still PhRMA's $80 billion
represents only a small fraction of the total cost of healthcare
reform. The National Center for Assisted Living has been lobbying
aggressively for elimination of Medicare Part D co-pays for assisted
living residents. For more, read the story.
Robert W. Carter, Jr. is a Virginia attorney whose law practice is
dedicated to protecting the rights of the victims of nursing
home and assisted living neglect and abuse in Richmond, Roanoke,
Norfolk, Lynchburg, Danville, Charlottesville, and across Virginia.
Posted on Sun, July 5, 2009
by Robert Carter