WASHINGTON, D.C. (August 18, 2016) – Today, Pharmaceutical Research and Manufacturers of America (PhRMA) spokesperson Allyson Funk provided the following statement in reaction the Centers for Medicare & Medicaid Services (CMS) Part D data release:
“The Medicare Part D cost data released today are misleading and do not accurately represent what Medicare pays for prescription drugs. The data exclude the substantial discounts and rebates negotiated directly between manufacturers and Part D plans to deliver value to beneficiaries.
“Exclusion of these discounts and rebates – which have increased each year of the program according to the Medicare Trustees – paints a misleading picture about the Part D program. In fact, according to the Congressional Budget Office, actual 2014 Part D mandatory outlays were $65 billion, nearly half the pre-rebate numbers released today, and represent only about 10.9 percent of total Medicare spending in 2014.
“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; a program that has come in under initial budget projections and continues to deliver relatively stable premiums to beneficiaries
“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 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 half a trillion dollars in the search for new treatments and cures, including an estimated $58.8 billion in 2015 alone.