POTENTIAL Reassessment of 2022 Part B Premiums

[GailL1]

AP 01/10/2022 Medicare told to reassess premium hike for Alzheimer’s drug

WASHINGTON (AP) — U.S. health secretary Xavier Becerra on Monday ordered Medicare to reassess a big premium increase facing millions of enrollees this year, attributed in large part to a pricey new Alzheimer’s drug with questionable benefits.

Becerra’s directive came days after drugmaker Biogen slashed the price of its $56,000-a-year medication, Aduhelm, to $28,200 a year — a cut of about half.

More than 50 million Medicare recipients who pay the $170.10 monthly “Part B” premium for outpatient care will see no immediate change to their costs, but Monday’s move could open the way for a reduction later in the year. The Department of Health and Human Services says it is reaching out to the Social Security Administration, which collects the premium, to examine options.

In announcing the price cut just days before the Christmas holidays, Biogen acknowledged the high cost had become a stumbling block to uptake for its medication.

Medicare is currently covering Aduhelm on a case-by-case basis. Later this week, the agency is expected to issue an initial coverage decision, but the process of finalizing it can take months. Medicare said Monday it is reviewing Becerra’s request to determine next steps.

Usually the financial impact of high-cost drugs falls most directly on patients with serious diseases such as cancer, rheumatoid arthritis or multiple sclerosis. But with Aduhelm, the pain would be spread among Medicare recipients generally, not just Alzheimer’s patients needing the drug.

Lots more at the AP link above

I don't know how much was allotted to this drug's cost in the current 2022 Part B premium.

[somarco]

@GailL1 I don't know how much was allotted to this drug's cost in the current 2022 Part B premium.

I doubt if the number crunchers do either. My guess is, they throw darts at a chart.

[trini3965]

The increase to Medicare is absolutely ridiculous  and I hope they reconsider reducing the amount

[GailL1]

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@trini3965 wrote:

The increase to Medicare is absolutely ridiculous  and I hope they reconsider reducing the amount

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How so?  Part B premiums are calculated by the cost to the actual program and an accrual for potential up and coming cost (like this Alzheimer's med).  Medicare beneficiaries pay about 25% of this cost in premiums and the remaining 75% or so is paid for by the taxpayers out of the General Fund revenues.

Like I said, I don't know how much of the 2022 Part B premium increase involved this drug accrued cost.

But I do think we will get a few buck back maybe in this potential reassessment.  Current Adm. needs some brownie points    😋  (whoops, sorry)