BIO Statement on Medicare Part D Changes in Budget Deal
Washington, DC (February 8, 2018) – BIO President and CEO Jim Greenwood issued the following statement today regarding proposed changes to the Medicare Part D program in the announced budget deal:
“It is regrettable that such sweeping changes to the successful Medicare Part D program would be considered with so little opportunity for public input or examination of the potential impact on beneficiaries and future biopharmaceutical innovation.
“While we support making out of pocket costs for Part D beneficiaries more affordable, the vast majority of savings from this proposal will accrue to the insurance companies that sponsor Part D plans, rather than patients. America’s biopharmaceutical industry pours far more of its earnings back into R&D than any other sector, approximately 20 percent of all revenue, as companies tirelessly seek to discover new treatments and cures for patients in need. Forcing companies to divert billions of dollars from the research lab to bail out insurance companies will stifle innovation while doing little to save costs for Medicare beneficiaries.
“We stand ready to work with Congress to craft a better solution that encourages reinvestment in the development of innovative new treatments and cures.”