Courtney Leads Support for Unprecedented Move by HHS to Reexamine Medicare Part B Premium Hike in light of Reduced Price for Alzheimer’s Drug
WASHINGTON, DC – Today, Rep. Joe Courtney (CT-02) penned a letter to U.S. Department of Health and Human Services (HHS) Secretary Xavier Becerra in support of the Department's decision to re-evaluate the previously announced, historically high Medicare Part B premium hike—a hike brought on by the skyrocketing price of a new Alzheimer's drug, Aduhelm, initially priced at $56,000 per year by its manufacturer. The high price point, combined with the unknown size of patient population, resulted in CMS actuaries announcing a 14.5% increase in Medicare Part B premiums for 2022—the largest in the history of the program.
Now, however, HHS is taking unprecedented steps to re-examine the premium increase, even after the new year has already begun—and Courtney is encouraging them to do so. In his letter, Courtney noted that the recently announced drastic price reduction for Aduhelm by its manufacturer from $56,000 to $28,200 per year warrants a complete review of CMS actuarial data to determine whether the Medicare Part B premium hike can be blunted now, this year, in 2022. Courtney was joined by thirty-one other Members of Congress on today's letter to Secretary Bacerra—click here to read. He also spoke on the issue today from the floor of the House of Representatives—click here to watch.
"We enthusiastically join Rep. Courtney and his fellow members of Congress in supporting Secretary Becerra's bold decision to direct CMS to revisit this year's Medicare Part B premium increase," said Nancy Altman, President of Social Security Works. "In light of Medicare's recent sound decision not to cover Aduhelm—the main driver of the premium hike—except in very limited circumstances, CMS must act swiftly to lower premiums. Every Medicare beneficiary should be grateful to Rep. Courtney for his important leadership."
"This could not come at a worse time in terms of the cost of living that many seniors are facing," said Courtney of the premium hike, speaking from the House of Representatives. "Looking closely at that decision, one of the driving factors was the projected cost of the drug Aduhelm, which was priced at $56,000 per year for Alzheimer's patients who were very excited about the possibility of getting the benefit of that drug. On December 20, Biogen, the manufacturer, cut the cost of that drug from $56,000 to $28,000. About two weeks ago, Secretary Becerra correctly instructed the actuaries of Medicare to go back and try and recalculate the Medicare Part B premium to see if there was a way to get some relief for seniors from that 14% rate increase. Today, thirty-one members of the House Democratic Caucus joined me in writing to Secretary Bacerra, applauding his decision and strongly advocating that Medicare go back in and recalculate that rate increase, which will provide tremendous assistance for seniors at exactly the time that they need it."
Courtney was joined by thirty-one other Members of Congress on today's letter in support of reevaluating the Medicare Part B premium hike. Text of the letter is included below, and you can click here to view the final—including a full list of co-signers.
Text of Rep. Courtney's letter to Secretary Becerra:
Dear Secretary Becerra:
As you know, in November the Centers for Medicare and Medicaid Services (CMS) announced the largest premium hike for Medicare Part B beneficiaries in the program's history. Medicare actuaries stated that the cause of this 14.5% increase was due to a combination of factors including higher utilization of the health care system, but a significant and new factor facing Medicare's finances is the cost of new Alzheimer's drug Aduhelm, initially priced at $56,000 per year. The extremely high price point and unknown size of the patient population eligible to receive it resulted in CMS actuaries determining that Medicare Part B beneficiaries must pay a historically large premium in order to ensure the cost of the new drug would not bankrupt the program. Although the announced premium increase would be offset by a larger increase in Social Security payments for most beneficiaries, it is undoubtedly a financial hardship compounding rising costs for seniors across the economy.
That is why we commend your directive that CMS reexamine the Part B premium in light of the announcement that Aduhelm's manufacturer, Biogen, would reduce its list price from $56,000 per year to $28,200. Given CMS' analysis of the impact that a $56,000 treatment would have on the Medicare Part B trust fund and the subsequent reduction in this price, asking the agency to reevaluate the system's financial needs is the right move for beneficiaries.
Shortly after your announcement, CMS made a preliminary determination that Medicare will cover Aduhelm for patients with mild cognitive impairment who are enrolled in a clinical trial as the agency learns more about the safety and efficacy of the drug. This decision along with the recent reduction in list price provide hope that the drastic impact on Medicare's finances could be blunted. While this request to review the actuarial data after the start of the new year is unprecedented, it is warranted in order to ensure seniors are not asked to pay more than they can afford as a result of one company's pricing decisions. We are hopeful that this review from CMS results in a reduction of the 2022 Part B premium.
Although we remain concerned about the financial impact of high price products like Aduhelm on both the Medicare system and patients, we are grateful for your decision to take a second look at how changes in Aduhelm's pricing and utilization could obligate a reduction in the 2022 Medicare Part B premium for American seniors.
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