In the Bipartisan Budget Act of 2018 the Congressional Budget Office underestimated – by $4 billion – the amount Medicare would save due to changes in Medicare Part D. Instead of saving $7.7 billion, Medicare will actually save $11.8 billion. The savings come from an increase in the government mandated discount that drug manufacturers must offer enrollees in the Medicare prescription drug coverage gap. However, this could impact drug prices long-term as manufacturers account for the mandatory discount as they determine prices for their new drugs. “This will have the long-term effect of driving drug prices higher because manufacturers will account for the mandatory discount when they set the price for new drugs,” said James Scott, CEO of Applied Policy, a reimbursement consulting firm. “Mandatory manufacturer discounts are probably not the best way to lower patient out-of-pocket spending if lowering drug prices overall is also a policy objective.” 

Read more in @modrnhealthcr at http://www.modernhealthcare.com/article/20180723/NEWS/180729970