Outgoing Biotechnology Innovation Organization CEO suggests consideration of price inflation caps instead of 'big discounts' in Medicare Part D and says that industry should fund a cap on beneficiary out-of-pocket costs in the program.

In a marked departure from previous years, budget proposal offers few specifics on cost reductions, but the $135bn savings estimate is a tacit endorsement of the Grassley-Wyden bill in the Senate.

But cost sharing for non-preferred specialty drugs cannot exceed the current 25%-33% coinsurance currently allowed for the specialty tier, the Centers for Medicare and Medicaid Services says in a proposed rule.