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House Health Reform Bill Increases Drug Rebates, Drops Part D Donut Hole

Executive Summary

The House health care reform bill asks pharmaceutical manufacturers to pay their share of the cost of expanding health care coverage by paying higher rebates on more drugs

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House Takes Up PhRMA Offer For Rx Discounts In Donut Hole, But Still Wants More Rebates

House health reform bill includes PhRMA's offer of 50 percent discounts on drugs for Medicare beneficiaries in the Part D donut hole, but also contains Medicaid-level rebates on drugs used by dual-eligibles.

Playing Defense In The House: PhRMA's Donut Hole Deal Garners Support From Democrats

Seventy House Democrats support PhRMA's discount proposal in lieu of phasing out the Part D coverage gap with funds from new rebates collected on drugs for dual-eligibles.

Part D Rebates Can Pay For Filling In Donut Hole, CBO Says

Rebates for Medicare/Medicaid dual eligible enrollees would generate $63 billion over 10 years, Congressional Budget Office estimates; phase-out of donut hole would cost only $47 billion, but most expensive years come after 10 year budget window.

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