Some pharmaceutical companies could take a sizable hit in their coffers due to the Bipartisan Budget Act of 2018, which was passed Feb. 9.
Under the legislation, the Medicare Part D coverage gap discount program would close in 2019 rather than 2020, according to an MMIT report. Beneficiaries’ coinsurance while in the “donut hole” would drop from 30 percent to 25 percent by 2019; brand-name manufacturers’ discounts provided to patients would jump from 50 percent to 70 percent.
“This is a very substantial policy change that would result in much higher manufacturer costs without a significant reduction to beneficiary spending,” Avalere Health said in a statement. “We estimate this change could have a multi-billion dollar impact on some large companies.”
To read more on the law’s impact, click here.