Good Day BIO: Part D costs expected to fall in 2022

The Medicare Trustees released their annual report yesterday—and there’s an interesting tidbit about Part D costs and drug prices. Plus, we get ready for World Environment Day and explain why biotech could hold the keys to a cleaner planet. (742 words, 3 minutes, 42 seconds)

Part D costs are expected to fall in 2022, say Medicare trustees 

The 2022 Medicare Trustees Report has an interesting nugget: projected Part D costs are slightly lower than those in the 2021 report, and slower growth in overall drug prices is one of the reasons why.

The key finding: The 263-page 2022 Medicare Trustees Report, released yesterday, says the Hospital Insurance (HI) trust fund could run short of money in 2028, two years later than projected in the 2021 report.

However: “As in past years, the Trustees have determined that the fund is not adequately financed over the next 10 years,” says the report.

What they’re saying: “This latest report shows an improvement in the financial position of Social Security and Medicare, reflecting the strong economic recovery and growth in the last year. However, in the coming decades it will be vital for Congress to take steps to put Social Security and Medicare on solid financial footing for the long term,” said Treasury Secretary Janet Yellen.

But here’s the most interesting tidbit: “The projected Part D costs…are slightly lower than those in the 2021 report. The difference is primarily attributable to slower growth in overall drug prices and higher direct and indirect remuneration (DIR), partially offset by higher enrollment growth,” say the trustees (page 35 of the report, page 41 of the PDF).

This tracks: “When rebates and discounts were factored in, brand-name drug prices declined—or grew slowly—in 2021,” wrote Drug Channels’ Adam Fein last month. “Consistent with our previous analyses, rebates and discounts reduced the selling prices of brand-name drugs to less than half of their list prices.”

Again: “As I have pointed out many times, pharma industry perma-critics refuse to accept that brand-name drug prices are falling—or that prescription drug spending is a small and stable portion of overall U.S. healthcare expenditures. That’s why I refer to them as drug pricing flat earthers (#DPFE). As famous economist John Maynard Keynes reportedly said: 'When the facts change, I change my mind.' What will the DPFEs do?”

The context: Over the past week, Sen. Joe Manchin (D-WV) has indicated support for a slimmed-down Build Back Better, which could include drug price controls, The Hill reports—even though the facts say innovation-killing drug price controls aren’t the answer.


More Health Care News:

Science: Monkeypox is a new global threat. African scientists know what the world is up against
“We are interdependent,” said Yap Boum, an epidemiologist in Cameroon. “What is happening in Africa will definitely impact what is happening in the West and vice versa.”

It’s National Itch Day—and the American Association of Kidney Patients (AAKP) is launching its “Stop the Itch” campaign to encourage those suffering from kidney diseases to learn more about Chronic Kidney Disease-Associated Pruritus (CKD-aP), a distressing and often overlooked condition found primarily among individuals with end-stage kidney disease.

Learn more during a free webinar today at 3 PM ET.

World Environment Day and the need to advance biotech solutions

Ahead of World Environment Day (Sunday, June 5), world leaders are meeting to discuss the fact there’s #OnlyOneEarth and the need for “collective, transformative action” on climate change—here’s why we’re paying attention.

What’s happening: High-level representatives around the globe are gathering for Stockholm+50, organized by the UN Environment Programme to address climate, nature, and pollution. The first UN conference on the environment took place 50 years ago in Stockholm in 1972.

What they’re saying: “Science points to the urgent need for a system-wide transformation of socioeconomic systems through policies,” says the meeting’s concept note.

What BIO says: We have to “science our way out” of these crises, BIO’s Dr. Michelle McMurry-Heath wrote in STAT News—and advance the biotechnology solutions that already exist.

Solutions like…

• tools to help farmers conserve and promote biodiversity by growing more with less
• genetically modified crops that can withstand climate change
• sustainable aviation fuels that reduce dependence on fossil fuels
• biobased alternatives to raw materials used in manufacturing
• innovations to address soil salinization and agriculture

Stockholm+50 also puts a focus on One Health, “to address issues around the human-animal-ecosystem health interface”—and specifically notes the link between climate change and antimicrobial resistance. 

Learn more about World Environment Day and how you can take action.

President Biden’s Friday: He’ll give remarks on the May jobs report at 10:30 AM ET. The prediction: “America's employers are expected to have added hundreds of thousands of jobs in May, even in the face of high inflation, a potential recession and a new phase in the pandemic economy,” reports CNN. 

What’s Happening on Capitol Hill: Enjoy the weekend.