Week in Washington 070722

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Week in Washington

07/07/2022

Drug Negotiations Bill Back

After a long hiatus, the potential Medicare drug negotiation bill (which would be part of a larger reconciliation bill) was released today. If you are interested you can read the bill here. The bill generally follows the drug negotiations portions of the Build Back Better bill with the difference being that the implementation of negotiations would be in 2026, the redesign of Medicare Part D would happen in 2025, and the maximum out of pocket would phase in in 2024. Absent from the bill is a specific cap on insulin out of pocket costs.

The bill goes before the Senate parliamentarian. The goal is for the full bill (including non-rx portions like energy/climate/taxes) to be introduced in July and voted on in August. The bill would need to be voted on before the end of September. Chances of overall passage are still unclear.

ACA Subsidies?

What is still unclear is if the ACA subsidy increases that were in the ARP legislation, would be included in this new reconciliation package. There is concern that the price tag ($200 billion) to fully implement is too high and therefore changes will be necessary (reducing generosity, time limiting it, ending silver-loading, etc.) to reduce the cost.

Transparency Regulation Goes into Effect

Health insurers and self-insured employers began releasing negotiated rate data as of July 1st last week. The information, in theory, could dramatically increase transparency. Wakely is currently investigating the data.

Information you can Use

• HCCI release its Health Marketplace Index report on drivers of health care spending. You can view it here

Charles Gabba tracker on individual market 2023 rates analyzed the first 15 states to release rates. On average rates are increasing 9.7%.

©2017-2022 Wakely Consulting Group LLC  All Rights Reserved. The materials in this document represent the opinion of the authors and are not representative of the views of Wakely Consulting Group. Wakely does not certify the information, nor does it guarantee the accuracy and completeness of such information. Use of this information is voluntary.