Bill Overview
Title: Cutting Medicare Prescription Drug Prices in Half Act
Description: This bill caps the cost of prescription drugs under Medicare at the amount that the Department of Veterans Affairs or the General Services Administration pays for the drug, whichever is lower.
Sponsors: Sen. Sanders, Bernard [I-VT]
Target Audience
Population: Medicare beneficiaries
Estimated Size: 65000000
- Medicare primarily provides health coverage for individuals aged 65 and older, as well as for younger individuals with disabilities and people with End-Stage Renal Disease. Therefore, the primary population affected by this bill will be those enrolled in Medicare.
- In 2023, there are approximately 65 million Medicare beneficiaries in the United States, which includes those 65 and older, individuals with disabilities, and others who qualify under specific medical conditions.
- The bill specifically references prescription drug costs under Medicare, which suggests the target population is all Medicare beneficiaries who use prescription medication.
- Globally, there is no direct impact since Medicare is a U.S. federal health program, so this estimation will only consider the U.S. population.
Reasoning
- The target population impacted by this policy is Medicare beneficiaries, primarily those aged 65 and older, and people with certain disabilities or diseases, as they are most likely to encounter high prescription drug costs.
- While the policy intends to reduce costs for medication-covered individuals, not every Medicare beneficiary uses prescription drugs extensively, thus impact will vary.
- The budget constraints suggest a significant but not unlimited capacity to support the price cap, implying prioritization or phased implementation may be necessary to maximize benefit without overspending.
- It's essential to consider that the policy's cost savings might not be immediately visible as healthcare benefits through reduced medication costs may translate into overall better health outcomes and reduced healthcare service utilization over time.
- A range of perspectives is crucial to understand different levels of impact, from high impact on individuals with extensive medication needs to those minimal or unaffected.
Simulated Interviews
Retired nurse (Florida)
Age: 72 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I spend significant portions of my fixed income on medications.
- Any reduction in my drug costs would substantially improve my quality of life.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
Retired engineer (Texas)
Age: 67 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 18/20
Statement of Opinion:
- I'm concerned about my growing healthcare expenses.
- This policy could make managing my diabetes more affordable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Retired teacher (California)
Age: 85 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 15.0 years
Commonness: 10/20
Statement of Opinion:
- My medical bills are quite high, and I rely on Medicare's support.
- Capping prescription prices would relieve some financial stress.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 4 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 7 | 3 |
Unemployed, qualifies for Medicare due to disability (New York)
Age: 59 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 12/20
Statement of Opinion:
- Prescription costs are overwhelming given my limited income.
- This policy could allow me to afford other necessities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 4 |
Retired accountant (Ohio)
Age: 68 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 20/20
Statement of Opinion:
- I don't spend much on pharmacy bills, so I might not see much change.
- This policy helps many, but personally, the impact on me might be minimal.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Retired factory worker (Illinois)
Age: 75 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 14/20
Statement of Opinion:
- Drug costs are a constant worry.
- Any reduction would mean more financial freedom for daily needs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 3 |
Unemployed, Medicare early retirement due to disability (Kansas)
Age: 64 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 6.0 years
Commonness: 9/20
Statement of Opinion:
- Mental health care is a huge expense for me.
- This could make my treatment far more accessible.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 6 | 3 |
| Year 20 | 6 | 3 |
Retired military (Arizona)
Age: 70 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- I already have reduced cost on drugs through other programs.
- This policy probably won't change much for me.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Retired part-time consultant (North Carolina)
Age: 62 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 13/20
Statement of Opinion:
- I hope this policy ensures affordable drug access when I need it.
- Currently, my health costs are low, but future security is important.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Retired farmer (Oregon)
Age: 73 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- Lower drug costs would have been beneficial years ago.
- Financial burdens would ease, increasing my quality of life.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Cost Estimates
Year 1: $-25000000000 (Low: $-20000000000, High: $-30000000000)
Year 2: $-26000000000 (Low: $-21000000000, High: $-31000000000)
Year 3: $-27000000000 (Low: $-22000000000, High: $-32000000000)
Year 5: $-29000000000 (Low: $-24000000000, High: $-34000000000)
Year 10: $-30000000000 (Low: $-25000000000, High: $-35000000000)
Year 100: $-40000000000 (Low: $-35000000000, High: $-45000000000)
Key Considerations
- The policy does not directly change healthcare outcomes but may improve access through affordability.
- Potential resistance from pharmaceutical companies may impact implementation speed and effectiveness.
- Long-term effects on the pharmaceutical market structure and drug pricing practices are potential uncertainties.