Medicare Part D

Medicare Part D

Americans For A Balanced Budget signs onto to letter along with 18 other organizations opposing the President’s Medicare Part D rebate proposal to support stimulus spending.

“The President’s proposal would require pharmaceutical companies to “rebate” up to 23 percent of their drug sales back to Medicare. This is not a “rebate” in any true sense of the word. Rather, this is an attempt to force drug makers to sell to insurance companies at a loss, as the government does with the poorly-performing Medicaid program. Government forcing companies to turn money over to the Treasury is not a rebate, it’s a tax.

This tax will have a significant impact on the market. Drug companies will respond by embedding the cost of the tax in the price of their drugs, driving up the total cost of insurance. Increasing the price of insurance—due to direct government involvement—is a de facto tax increase on America’s seniors. A recent study by the American Action Forum estimates that these drug rebates would increase the price of Part D premiums as much as 40 percent.”

To read the full letter click here.

 

 

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