Medicare told to reassess premium hike for Alzheimer's drug
WASHINGTON (AP) — U.S. health secretary Xavier Becerra on Monday ordered Medicare to reassess a big premium increase facing millions of seniors this year, attributed in large part to a pricey new Alzheimer's drug with questionable benefits.
Becerra's directive came days after drugmaker Biogen slashed the price of its $56,000-a-year medication, Aduhelm, to $28,200 a year — a cut of about half.
“With the 50% price drop of Aduhelm on Jan. 1, there is a compelling basis ... to reexamine the previous recommendation,” Becerra said in a statement about his directive to the Centers for Medicare and Medicaid Services. The statement was provided to The Associated Press.
More than 50 million Medicare recipients who pay the $170.10 monthly “Part B” premium for outpatient care will see no immediate change to their costs, but Monday's move could open the way for a reduction later in the year. The Department of Health and Human Services says it is reaching out to the Social Security Administration, which collects the premium, to examine options.
The standard Part B premium is rising by about $22 this year, up from $148.50 in 2021 and one of the biggest annual increases ever. About half of that, $11, was attributed to the potential costs of having to cover Aduhelm at its original $56,000 price.
Becerra's move came after prominent Democratic senators urged the Biden administration to take immediate steps to cut rising drug costs for seniors. Bigger curbs on drug prices promised by Democrats are hung up in Congress along with the rest of President Joe Biden's massive social agenda legislation.
In announcing the price cut just days before the Christmas holidays, Biogen acknowledged the high cost had become a stumbling block to uptake for its medication.
“Too many patients are not being...