This could really help with prescription drug costs
The Democrat's sweeping climate and health care bill holds some ground breaking news for those of us on Medicare. As I have stated in the past, we have been overpaying for prescription drugs because our Federal government does not negotiate directly with the drug manufacturers, while other governments around the world do so. On Friday, the house will vote on this bill, which passed in the Senate over the weekend. This proposal has been around for years, but it has never been this close to the finish line. THIS COULD REALLY HELP WITH PRESCRIPTION DRUG COSTS!
This article breaks down the prescription drug impact in a very understandable way, so I will only make a few comments:
It is "go slow" start, with Medicare negotiating a limited list of drugs, beginning four years from now. This will take time to affect overall drug costs, but it will have a huge impact over time.
I am very pleased to see a $2,000 annual cap on Medicare recipients' drug costs, starting in 2025. A small minority of my clients have annual out of pocket drug costs, after PART D coverage, in excess of $2000. These people are our most vulnerable.
Of course, the drug industry lobbyists predict less research and development, resulting in fewer breakthrough drugs. I don't buy it. We have been subsidizing drug company R&D for all the countries that negotiate lower prices directly with the drug companies for decades. That subsidy will end, but competition will force the drug companies to find a way to keep investing in R&D.
So, there you have it. Let's hope the House vote goes the right way. If you like getting the latest news on Medicare and the various plans, you can follow OTL Benefits – Medicare Questions Answered on FaceBook. I am posting new information regularly.
Yours in good health,
Jeff