Government Should Establish Medicare Part-D

Anywhere from 3 to 7 million Medicare beneficiaries are expected to fall into a coverage gap or “donut hole” this year. Once in the coverage gap, a Part-D beneficiary must spend $2,850 out of their own pocket before coverage kicks back in.

While a variety of private companies offer Part-D drug plans, the federal government is banned from establishing a plan of its own. Such a plan would allow the federal government to use its massive bargaining power to negotiate with harmaceutical companies for lower drug prices.

Florida PIRG recently released a Consumers Union survey that compared the prices of six prescription drugs at 261 retail pharmacies in Broward County. The study showed that 80 percent of the time, seniors paying the full retail price paid less than those purchasing prescriptions under a Part-D plan while in the coverage gap.

“Congress should give Medicare eligible individuals a choice, and lift the prohibition on Medicare’s ability to negotiate lower prices from drug companies through a Medicare-administered Part-D plan for seniors,” said Chuck Bell of Consumers Union.