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Health Care Reform:

Health Insurance & Affordable Care Act

WebMD News from Kaiser Health News

Three Key Changes Proposed For Medicare Part D

By Mary Agnes Carey

Fri, Feb 28 2014

The Obama administration is proposing several changes to the Medicare drug program, also known as Part D. They range from new limits on the number of plans insurers could offer consumers to new rules about what drugs those plans must cover. The plan also would prohibit exclusion of pharmacies from a plan’s “preferred pharmacy network” as long as they agree to the plan’s terms and conditions. Here’s a quick look at those proposals:

--Reductions in Required Drug Coverage: The proposal would remove special protections for some classes of drugs, which require insurers to provide access to the vast majority of drugs in that class.

Currently, Medicare has six protected drug categories. The Centers for Medicare & Medicaid Services plans to eliminate two of those, starting in 2015 with antidepressant drugs and those that help suppress the immune system. Antipsychotic drugs may lose protected status in 2016. CMS says that safeguards in current law will ensure that patients get the drugs they need, and point out that 140 other classes of drugs are offered through the prescription drug program, even though they are not covered by protected status. CMS also says that special status hurts the prescription plans’ ability to negotiate discounts with drug makers.

Those assurances are giving little comfort to Democratic and Republican lawmakers and patient groups who fear that the change will mean seniors and the disabled won’t get drugs they need. “Frankly, we are worried,” Carl Schmid, deputy executive director of The AIDS Institute, told the House Energy and Commerce health subcommittee last week. “Who will be next? How much longer will people with HIV, cancer or epilepsy have access to all the medications they need through Part D?”

Rep. Tim Murphy, R-Pa., a psychologist and co-chairman of the Congressional Mental Health Caucus, said federal regulators should not interfere with carefully crafted drug regimens that are working for patients with mental illness. “If you restrict access to these drugs you restrict the treatment of mental illness,” Murphy told a top federal official who testified at the hearing. “You raise suicide rates.”

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