Data Released Today is Misleading
WASHINGTON, D.C. (April 30, 2015) – Pharmaceutical Research and Manufacturers of America (PhRMA) president and CEO John J. Castellani released the following statement on today’s Medicare Part D data release:
“PhRMA supports efforts to increase transparency in health care costs, which can help support improved health care quality and efficiency. However, the Medicare Part D cost data released today are misleading and an inaccurate representation of actual Medicare Part D spending.
“Significant price negotiation exists in Part D and results in rebates of as high as 20 to 30 percent for branded medicines. These savings are not reflected in the data. Rebates have been a significant factor in keeping Part D program costs hundreds of billions of dollars below original estimates, while still offering beneficiaries steady premiums and a robust choice of plans.
“As with all data, it is important to look at these numbers in context. As released, these data and analyses may be confusing to beneficiaries, making it difficult for them to better understand how care is delivered under the Part D program.
“Medicines play a critical role in the U.S. health care system, both by improving care and helping to control costs. America’s biopharmaceutical companies are committed to working with health care providers, health plans, CMS and other stakeholders to ensure doctors and patients have the necessary tools to provide the right treatment at the right time for all patients.”
The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading innovative biopharmaceutical research and biotechnology companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier, and more productive lives. Since 2000, PhRMA member companies have invested more than $600 billion in the search for new treatments and cures, including an estimated $51.2 billion in 2014 alone.
Connect with PhRMA
For information on how innovative medicines save lives, please visit: