Changes to Medicare Parts C and D will Increase Costs for Manufacturers.

The NAM filed comments today with the Centers for Medicare and Medicaid Services (CMS) on “Policy and Technical Changes to the Medicare Advantage and the Medicare Prescription Drug Benefit Programs,” asking for withdrawal of the proposed rule while highlighting serious changes that would alter the programs and ultimately increase costs. Of specific interest is an interpretation of the law that opens the door for government intervention into negotiations of plans – a clear overreach of the legislation that was intended to prevent government interference in these private sector negotiations.

In addition, the rule places mandates on mail order companies, reduces the number of protected classes of drugs provided under Part D, and reduces the ability of plans to negotiate with preferred pharmacies. All of these significant policy changes will increase the costs to Medicare, and in turn, increase the cost to manufacturers who use these programs. These changes are contrary to legislative intent and undermine the stability of successful programs. Instead of tearing down a popular program that is fiscally sound we should be looking to replicate similar solutions elsewhere.

Medicare policy should be based on sound health outcomes combined with robust fiscal management. The current debate looks too much at old politics and not enough a new answers.

Christine Scullion

Christine Scullion

Director of Human Resources Policy at National Association of Manufacturers
Christine Scullion is the director of human resources policy at the National Association of Manufacturers (NAM). Mrs. Scullion  oversees the NAM’s human resources policy work and has expertise on issues ranging from health care, immigration, workforce and education issues and the federal rulemaking process.  Mrs. Scullion’ s background includes policy and government relations experience on a range key health care, immigration and workforce issues. Mrs. Scullion received her MBA from the Rutgers and undergraduate degree from Penn State University.
Christine Scullion

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