Advocacy Memo

Protect Medicare Advantage Beneficiaries from Rising Costs; Urge HHS/OIG to Withdraw Proposed Rule Eliminating Drug Rebates

THE ISSUE:

Better Medicare Alliance (BMA) urges the Administration to protect Medicare
Advantage beneficiaries from rise in premiums, out-of-pocket costs, and reduction in supplemental
benefits due to proposal to eliminate rebates for drugs in Part D.

THE IMPACT:

• The rule will result in an estimated 19% increase in premiums for the first year and 25% increase over the next
ten years for those who pay premiums in Part D plans. The impact is estimated to be an average premium
increase of $29.00 per month for 8.6 million MA-PD beneficiaries who pay premiums.
• For the 4.2 million MA-PD enrollees in employer-sponsored retiree plans, this new rule could translate into
direct cost increases for beneficiaries in self-funded plans.
• All 16.4 million individuals in MA-PD could be exposed to higher out-of-pocket costs, such as higher copays
or coinsurance for visits to primary care providers or specialists.
• Enrollees in MA-PD plans could be exposed to reduced supplemental benefits, possibly limiting or
eliminating benefits like dental, vision, and hearing coverage, as well as the new benefits to be targeted to
those with chronic conditions.

ACTION:

Join BMA in signing the attached letter expressing these concerns about the proposed
rule’s impact on Medicare Advantage beneficiaries and urging HHS/OIG not to finalize this proposed rule BY TUESDAY, APRIL 2.