Beware The Debt Deal's Spending Cut Trigger: Medicare Part D And B Provider Pay Would Drop
This article was originally published in The Pink Sheet Daily
Executive Summary
A mandatory cut to Medicare if Congress fails to pass a joint committee bill on deficit reduction by Jan. 15 could indirectly affect pharmaceutical companies as providers exert pricing pressure.
You may also be interested in...
PCMA Makes Specific Rx Cost-Cutting Proposals To Congressional "Super Committee"
Many of the proposals will put the PBM industry association at odds with pharmaceutical manufacturers and pharmacies as they try to influence the legislation that will be worked out by the Joint Select Committee on Deficit Reduction over the next three months.
PCMA Makes Specific Rx Cost-Cutting Proposals To Congressional "Super Committee"
Many of the proposals will put the PBM industry association at odds with pharmaceutical manufacturers and pharmacies as they try to influence the legislation that will be worked out by the Joint Select Committee on Deficit Reduction over the next three months.
Who’s Who On The Joint Select Committee On Deficit Reduction
The Budget Control Act created a 12-member bicameral panel charged with finding at least $1.2 trillion to cut from federal spending. The top Democrat and top Republican in each chamber of Congress appointed three members to serve on the joint committee. The Committee needs to make its legislative proposal by Thanksgiving, with only a simple majority needed to send the fiscal package to both chambers for approval. President Obama would then have to sign the bill by Jan. 15, 2012. A failure to accomplish this will trigger automatic spending cuts across all government programs as defined by the BCA (“Beware The Debt Deal’s Spending Cut Trigger: Medicare Part D and B Provider Pay Would Drop,” “The Pink Sheet” DAILY, Aug. 2, 2011). Health care related issues are expected to be a significant part of the discussions within the committee, including Medicaid-level rebates for drugs used by dual eligibles in the Medicare Part D program.