Update for Week Ending March 12, 2022

Update for Week Ending March 12, 2022

Congress Finally Acts - Government Will Not Shut Down

 After a delay of over six months, Congress was finally able last week to pass the legislation needed to fund the federal government for the remainder of fiscal year 2022.

That means Social Security payments, veterans’ disability payments, and other resources for seniors provided by the federal government will continue uninterrupted.

The way it’s supposed to work is for Congress to fund the government for the new fiscal year starting on October 1 of each year. But for the past several years, no matter which party-controlled Congress, it has been unable to do that.

Instead, they have passed short-term funding bills that keep the government open while they continue with their work.

Last week, at the last minute, they were able to come to agreement and send the new funding bill to the President for his signature. However, they needed to pass another short-term funding bill to keep the government open until March 15 while the over 2,700-page bill is proof-read and printed prior to the President’s signing of it.

Better late than never.

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 Efforts to Lower Prescription Drug Prices Continue

Although Congress has so far failed to pass legislation to lower prescription drug prices, they have not given up trying to do so.

This Wednesday, the Senate Finance Committee will hold a hearing entitled “Prescription Drug Inflation: an urgent need to lower prescription drug prices in medicines.”

In addition, leaders in both houses have said they will continue to work on legislation that can gain enough support to pass. As we’ve reported in the past, the Democratic majority has been unable to agree among themselves on legislation to lower drug prices and Republicans have said they will not vote for any drug-lowering legislation the Democrats have come up with so far.

Because of the impasse in Congress, the Biden administration has been looking for ways to lower drug prices either through executive orders or through administrative rule-making.

An example of the latter is a Medicare proposal aimed at lowering out-of-pocket drug costs. It is complicated measure but that’s because the manner in which drug prices are set is very complicated and not at all transparent.

Very briefly, this new rule mandates that Medicare Part D plans apply all “price concessions” they receive from pharmacies to the final sale price.

However, it wouldn’t ensure the rebates that manufacturers pay to insurers and pharmacy middlemen also apply at the point of sale. Critics argue those rebates are shrouded in secrecy and have ultimately led to higher initial list prices.

The Centers for Medicare & Medicaid Services (CMS) said in January that the proposed rule would reduce costs of prescriptions for those who need them, and improve transparency and competition in the Part D program.

However, Pharmacy Benefit Managers (PBMs) argue that the proposal would limit its function to bring lower drug costs to consumers. PBMs have repeatedly argued that drug manufacturer price setting is the root cause of high drug costs.

PBMs are something no one outside of the prescription drug world had ever heard of until the drive-in recent years to lower drug prices. They are pitted against the big drug manufacturing companies in the battle, with each accusing the other of being the reason for the outrageously high prescription prices Americans are paying and each are pouring millions of dollars into lobbying efforts to try and defeat any proposed legislation that might harm their profits.

As we said, it’s very complicated.

In all of this, TSCL’s goal remains the same:  prescription drug prices are too high, and we need government action to lower them. A drug that will cure or control a medical condition does no good if the person who needs the drug can’t afford it.

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Mail Order Drugs and the Post Office

It is now common for many seniors to receive their prescription drugs through the mail. So, it is good news that Congress has finally passed a bill that will shore up the finances of the Postal Service, thereby insuring the uninterrupted delivery of the needed prescriptions.

As we’ve reported previously, Postal Service retirees will now use Medicare for their health care needs. In addition, the new legislation puts into law the six-day delivery of the mail. There was talk in the past of cutting out Saturday delivery as a way of cutting costs but now that is no longer an option.

This is particularly good news for seniors who live in the more rural parts of the U.S.

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As we continue dealing with the Covid 19 pandemic, TSCL remains constant in our fight for you to protect your Social Security, Medicare, and Medicaid benefits. We’ve had to make some adjustments in the way we carry on our work, but we have not, and will not stop our work on your behalf.

For progress updates or for more information about these and other bills that would strengthen Social Security and Medicare programs, visit our website at www.SeniorsLeague.org or follow TSCL Facebook or on Twitter.