Health Reform Bill Would Cut Drug Spending for Many on Medicare, Budget Office Says

Tell me what the hold-up is again?


Health Bill Would Cut Drug Spending for Many on Medicare, Budget Office Says

By ROBERT PEAR
Published: August 30, 2009


WASHINGTON — Medicare beneficiaries would often have to pay higher premiums for prescription drug coverage, but many would see their total drug spending decline, so they would save money as a result of health legislation moving through the House, the Congressional Budget Office said in a recent report.

Premiums for drug coverage would rise an average of 5 percent in 2011, beyond the level expected under current law, and the increase would grow to 20 percent in 2019, the budget office said.

“However,” it said, “beneficiaries’ spending on prescription drugs apart from those premiums would fall, on average, as would their overall prescription drug spending (including both premiums and cost-sharing).”

Moreover, the budget office said, the drug-related provisions of the House bill would save the federal government $30 billion from 2010 to 2019.

The estimates were set forth in a letter from Douglas W. Elmendorf, the director of the Congressional Budget Office, to Representative Dave Camp of Michigan, the senior Republican on the House Ways and Means Committee.

more...

http://www.nytimes.com/2009/08/31/health/policy/31drug.html?ref=us

going to reduce drug costs by 2% in exchange for not mandating medicare negotiating drug prices. Now they're saying they're going up 5%????

and those premiums will go up to 20% shortly.





............But, Mr. Elmendorf said, the averages conceal the fact that beneficiaries would be affected in different ways.

Those who use a relatively small amount of prescription drugs would pay more in additional premiums than they would save, he said, while those who use a large amount of drugs “would gain more from lower cost-sharing than they would pay in higher premiums.”

The budget office did not estimate how many Medicare beneficiaries might see an increase in their spending for prescription drugs and drug coverage, and how many would see a reduction, under the House bill. Mr. Camp said “the vast majority of seniors” would pay more, and he said House Democrats should scrap their bill and “start over with open, bipartisan talks.”

this will be the repug message that is for sure.