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PhRMA Statement on Medicare Part D

Washington, D.C. (August 4, 2011) — Pharmaceutical Research and Manufacturers of America (PhRMA) Vice President Karl Uhlendorf issued the following statement on the continued success of Medicare Part D:
 
“Since its inception, Medicare Part D has provided unprecedented access to medicines at affordable prices. This exemplary track record of success continues with today’s announcement by the Department of Health and Human Services that average monthly Part D premiums for 2012 will fall slightly to $30 – a 44 percent decrease from original premium projections.
 
“These continued low premiums add to the overwhelming body of evidence demonstrating how the competitive market structure of Part D is yielding great value for beneficiaries and the Medicare system overall.
 
“For example, a recently published study in the Journal of the American Medical Association showed that drug coverage provided by Part D reduces nondrug medical spending for beneficiaries enrolled in the program.
 
“The Harvard researchers found that the access and adherence to medicines driven by Part D saves Medicare about $1,200 per year in hospital, nursing home and other costs for each senior who previously lacked comprehensive prescription drug coverage. According to other experts, this finding equals about $12 billion per year in savings across Medicare.
 
“In addition, Part D is costing much less than originally predicted. Recently, the Congressional Budget Office estimated that program spending was 41 percent lower than their initial 10-year estimate.
 
“What’s more, enrollees continue to be overwhelmingly satisfied with their prescription drug coverage in the program. According to a recent Medicare Today survey, 84 percent of seniors say they are satisfied with their coverage under Part D.
 
“These facts illustrate that Medicare Part D is a model for health care that should be emulated, not weakened by unsound policy proposals.”

Find PhRMA Online:

For information on how innovative medicines save lives, visit: http://www.innovation.org
For information on the Partnership for Prescription Assistance, visit: http://www.pparx.org
For information on ensuring the flow of medicines during public health emergencies, visit http://www.rxresponse.org