The Centers for Medicare and Medicaid Services on Wednesday published a list of 101 commonly used generic medicines that would cost some Medicare patients no greater than $2 per month under a proposed new model.
It’s a sign the Biden-Harris administration is doubling down on its promise to lower prescription drug costs, a key talking point just a month ahead of the 2024 presidential election. The model would build on recent efforts, including the Inflation Reduction Act, which capped monthly out-of-pocket costs for seniors at $2,000 and allowed Medicare to negotiate certain prescription drug prices for the first time.
“CMS is using every lever at its disposal to ensure people with Medicare have access to lower-cost prescriptions,” CMS Administrator Chiquita Brooks-LaSure said in a news release.
Under the voluntary model, Medicare Part D plans would be encouraged to offer a list of generic drugs for chronic conditions — including high cholesterol and high blood pressure — at a fixed copayment of up to $2 a month. The draft list includes warfarin, penicillin and prednisone.
“CMS sought to include as many drugs used to treat common conditions as possible while balancing the cost of such drugs to encourage plan participation, thereby maximizing access for beneficiaries,” the agency said in its request for information.
The model was proposed last year by CMS in response to an executive order calling on HHS to consider what more it can do to lower prescription drug costs. CMS is now seeking input on the model from Medicare beneficiaries, Part D plan sponsors, pharmacy benefit managers, drugmakers and other stakeholders.
Responses are due Dec. 9, and the model could take effect as early as January 2027, according to CMS.
The Association for Accessible Medicines, a trade group representing generics manufacturers and distributors, criticized the model in a statement to Endpoints News on Wednesday.
“We appreciate CMS’s interest in lowering seniors’ costs through encouraging generic adoption, but this proposal does nothing to prevent PBM rebate games, ensure adoption of new generics, or otherwise secure the long-term sustainability of generic drug competitions,” AAM said.