PhRMA Statement on Proposed Rule on Medicare Advantage & Part D

Pharmaceutical Research and Manufacturers of America (PhRMA) Senior Vice President Matthew Bennett issued the following statement:

“PhRMA opposes the proposed rule on Medicare Advantage and Part D that CMS released in early January because it could disrupt care for millions of beneficiaries. The Part D programme is already working well, making the proposed rule unnecessary and harmful. Quite simply, it is a solution in search of a problem.

“Since 2006, the Part D programme has developed a strong track record of success. Currently, total Part D costs are 45% — or $348 billion — lower than initial projections for 2004–2013. In addition, average beneficiary premiums are stable at $31 per month in 2014 — less than half the level originally projected. And several surveys have found that 90% or more of Part D beneficiaries are satisfied with their coverage.

“Despite Part D’s success, the proposed rule represents a fundamental shift in CMS’ administration of Part D and would erode key features at the core of the programme’s competitive structure — to the detriment of beneficiaries. The proposed changes would restrict patient access to needed medications, limit beneficiary choice of affordable plan options, and unlawfully interfere in a competitive, market-based programme that is already working. Not only are these changes unnecessary; they could increase costs for both beneficiaries and taxpayers.

“In light of Part D’s track record, PhRMA urges CMS to withdraw the proposed rule which, as written, would undermine Part D and harm beneficiaries who rely on the program for affordable access to comprehensive prescription drug coverage.”