House Committee on Oversight and Government Reform Chairman James Comer is examining the Medicare Part D program due to concerns that changes under the Biden Administration’s Inflation Reduction Act (IRA) may lead to higher drug prices and reduced access. Comer has expressed worries about Pharmacy Benefit Managers (PBMs) and Part D plans potentially restricting drug access and increasing manufacturer rebates to offset new costs.
In a letter addressed to Centers for Medicare & Medicaid Services (CMS) Administrator Mehmet Oz, M.D., Chairman Comer requested a briefing on CMS’s efforts to ensure that Medicare recipients are not adversely affected by these changes. He highlighted concerns about the IRA’s Part D redesign, which he claims increased liabilities for Part D plans and PBMs by reducing federal spending while mandating additional discounts from manufacturers.
Comer stated, “The Committee on Oversight and Government Reform is conducting oversight of the Medicare Part D Program. The Committee understands that Part D plans and Pharmacy Benefit Managers are limiting access to certain prescription drugs and forcing manufacturers to raise rebates, and therefore prices, to cover the costs of the Inflation Reduction Act (IRA) Part D redesign.”
He further noted reports suggesting that PBMs might be incentivized by the redesign to favor drugs with higher list prices, contradicting IRA’s goals. “Apparently, as the redesign went into effect, Part D plans and PBMs used their position as middlemen to improperly pass the costs of the Part D redesign onto manufacturers,” Comer wrote.
Chairman Comer emphasized former President Donald Trump’s focus on reducing prescription drug costs for Americans: “President Donald Trump consistently highlighted the importance of reducing the cost of prescription drugs for all Americans.” He stressed that it is crucial for CMS to take action against potential abuses within Medicare Part D.
Read more details in Comer’s letter addressed to CMS.
