Medicare Drug Savings Act Provides Common Sense Solution to High Drug Prices
In a response to the federal government paying unconscionably high drug prices for dual-eligibles on Medicare, Senator Jay Rockefeller (D-WV) introduced legislation today to require drug companies to provide discounts for low-income Medicare beneficiaries, as they currently do under Medicaid. The Illinois Alliance for Retired Americans strongly supports Rockefeller’s legislation which would save taxpayers and Medicare beneficiaries billions of dollars.
After passage of the Medicare prescription drug law in 2003, drug companies received windfalls worth billions of dollars, as a result of no longer applying rebates for dual-eligibles (beneficiaries who qualify for Medicare and Medicaid). Senator Rockefeller’s 2013 Medicare Drug Savings Act reverts back to previous law and recaptures the savings lost under the Medicare drug law. By simply returning these beneficiaries to Medicaid-negotiated rebates, taxpayers would save $141.2 billion over the next ten years.