A medical group is expected to raise the price of some drugs after President Donald Trump’s administration proposed eliminating Medicare reimbursement rates for those medications.
A group of 12 major medical organizations will begin paying a total of $500 million for drugs that are sold under Medicare Part D, according to a statement from the group on Wednesday.
That includes about half a dozen generic versions of a drug that are the most commonly prescribed in the United States.
The prices of those drugs will also be increased.
The Medicare Part B drug benefit for the generic versions will remain unchanged, the statement said.
The remaining drugs will continue to be covered by Part D and will be reimbursed by the Medicare Part C drug benefit, it said.
Medicare Part A drugs will be covered only by Part C.
The proposed Medicare cuts would also mean that many people who receive Medicare Part E drugs through Medicare Part K would pay a premium on top of their Part D rates to offset the increased price for those drugs, according the statement.
The increase in Medicare Part Q prices for Part D drugs would be less than the Medicare price hikes for those generic drugs, but the groups said they would adjust those prices to reflect those Medicare price increases.
The drug groups are seeking approval from the Medicare Department of Health and Human Services to make the changes.
In September, Medicare officials announced that Part D drug prices would increase by about 1% a year for the next five years.
That will apply to most Medicare Part H drugs.
For Part D medications, the price increases are more dramatic because they will be paid for by the federal government, not by insurers.
Medicare covers Part D only for part of the cost of drugs that the government covers.
The Medicare Part P drug benefit will remain untouched.
The Part D price increases will be offset by Medicare Part M costs, which include Medicare Part F costs, and Medicare Part S costs.