How Would Drug Price Negotiation Affect Medicare Part D Premiums?

(By Juliette Cubanski and Tricia Neuman for Kaiser Family Foundation published August 12, 2021)

Proposals to allow the federal government to negotiate prescription drug prices, such as H.R. 3, the Elijah E. Cummings Lower Drug Costs Now Act, aim to lower out-of-pocket drug costs for Medicare beneficiaries and private plan enrollees and achieve savings for Medicare. The debate over a budget reconciliation package in the coming weeks, and possibly months, is likely to focus heavily on the savings to Medicare, which can be used to expand Medicare benefits and fund other health care priorities. However, by lowering Medicare spending for Part D, which covers retail prescription drugs, drug price negotiation proposals would also be expected to lower premiums that beneficiaries pay for Part D coverage.  Continue reading here…

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