How New Medicare Rule Could Lower Prescription Drug Costs

Under a new Medicare rule, you could see some prescription drug savings.

According to The Senior Citizens League, “seniors enrolled in Medicare Advantage plans and Medicare Part D prescription drug plans can expect improved transparency and lower out-of-pocket costs for medications by requiring Medicare prescription drug plans to pass certain savings on to customers.”

How does this new rule work? “More Medicare Part D drug plans are entering `price concession’ arrangements in which they pay reduced costs to some pharmacies for certain dispensed drugs. But these arrangements are not publicly disclosed, and the drug plans do not pass the savings along to Medicare patients who purchase the drugs.”

The new rule requires Part D plans to give “all price reductions they receive from network pharmacies to the person buying the drug, which should reduce the out-of-pocket cost charged to the customer. The policy will take effect on Jan. 1, 2024.”

The delay in the starting date of the new rule, according to TSC
SC
L, “is to give the Part D plans time to adjust their pharmacy contracting and avoid any possible disruptions.”