The Pharmaceutical Research and Manufacturers of America (PhRMA), a Washington, D.C.-based trade group, said it supports the Centers for Medicare & Medicaid Services’ (CMS) plan to share savings directly with Medicare beneficiaries at the point of sale.
The direct allocation of manufacturer rebates to beneficiaries will reduce patients’ out-of-pocket costs and improve the effectiveness of the Medicare Part D program for seniors and disabled recipients, PhRMA said in a Jan 17 release.
CMS issued a request for information (RFI) on a plan to require Medicare Part D to provide a portion of manufacturer rebates and discounts to beneficiaries at the point of purchase.
In a response to the RFI, PhRMA cited a study from consulting firm Milliman that says Medicare beneficiaries could save $4 billion to $28 billion in combined out-of-pocket costs over a 10-year period if rebates are shared at the point of sale.
The planned move could also help the federal government save $8 billion and $73 billion over 10 years, according to the research.
