Medicare negotiation could save billions of dollars in lower commercial health insurance costs by 2030
As Congress considers legislation to reform prescription drug pricing, a new analysis conducted by the West Health Policy Center and released by its Council for Informed Drug Spending Analysis (CIDSA) estimates that the Elijah E. Cummings Lower Drug Costs Now Act (H.R. 3) could result in hundreds of billions of dollars in lower commercial health insurance costs by 2030. These savings would come from a $195 billion reduction in employer costs and $98 billion in savings for workers.
The non-profit, non-partisan West Health Policy Center engaged the actuarial firm Milliman, to analyze the impact of the legislation on stakeholders. Using Milliman’s analysis and other data sources West Health Policy Center researchers then quantified the dollar impact on employee and employer costs.
H.R. 3 would empower the Secretary of Health and Human Services to directly negotiate…