House Committee on Oversight and Government Reform Chairman James Comer has initiated an investigation into the Medicare Part D program. This move follows reports that Part D plans and Pharmacy Benefit Managers (PBMs) are allegedly limiting access to certain prescription drugs and pressuring manufacturers to increase rebates, which may lead to higher drug prices. The concerns arise from the implementation of the Biden Administration’s Inflation Reduction Act's (IRA) Part D redesign.
Chairman Comer addressed these issues in a letter to Centers for Medicare & Medicaid Services (CMS) Administrator Mehmet Oz, M.D., requesting a briefing on CMS efforts to prevent abuse within the Medicare Part D program. He emphasized ensuring that Medicare recipients are not adversely affected by the IRA Part D redesign.
“The Committee on Oversight and Government Reform is conducting oversight of the Medicare Part D Program," wrote Chairman Comer. "The Committee understands that Part D plans and Pharmacy Benefit Managers are limiting access to certain prescription drugs and forcing manufacturers to raise rebates, and therefore prices, to cover the costs of the Inflation Reduction Act (IRA) Part D redesign."
Chairman Comer highlighted that as part of this redesign, drug manufacturers are required to provide additional discounts on prescription drugs, which also increased liability for Part D plans and PBMs by reducing federal spending.
“Apparently, as the redesign went into effect, Part D plans and PBMs used their position as middlemen to improperly pass the costs of the Part D redesign onto manufacturers," he noted. "According to reports, Part D plans and PBMs are incentivized by the Part D redesign to prefer higher list price drugs with higher rebates, a direct contradiction to the stated goals of the IRA."
He concluded by underscoring President Donald Trump's focus on reducing prescription drug costs for Americans. "It is vital for the Committee to understand what actions CMS is taking to prevent abuse in the Medicare Part D program,” concluded Chairman Comer.
The letter sent by Chairman Comer can be accessed through a provided link.
