A recent survey of over 1,000 consumers found that 71% of participants said that inflation has affected their decision-making processes regarding healthcare. Results also show that one in ten people in the US owe at least 250 in medical debt. 43% of respondents said that the max amount they could comfortably spend on healthcare at the moment is just shy of that figure at $249.
The Centers for Medicare and Medicaid Services (CMS) released a draft guidance that finally sets a timeframe for drugmaker rebates for medications that increase in price faster than inflation. The program, part of the Inflation Reduction Act, will kick into action by 2025. The agency is seeking public comments on the draft guidance submitted by March 11th.
Although the Inflation Reduction Act includes a provision that makes drugmakers provide rebates to US Centers for Medicare and Medicaid Services (CMS) if they hike prices at a rate exceeding inflation, no such penalties have yet been divvied out. This week, Sen. Ron Wyden (D-OR), Senate Finance Chair, penned a letter asking the head of CMS when the rebates would kick in, emphasizing the need for quick action as many drug prices jumped significantly higher than the current rate of inflation in the past month.
A recent analysis by Moody’s Investment Service finds that drugmakers’ concerns about the US Democrats’ landmark drug pricing reforms may have some degree of validity. The legislation, which lets Medicare negotiate the price of a small set of drugs, would negatively affect the credit of the pharma industry. It would also cap inflation-attributed price hikes.
The rising cost of healthcare has been exacerbated by inflation, impacting the healthcare decisions of almost 40% of US residents. A newly published West Health/Gallup shows healthcare cost increases have caused a large swath of the population to delay or miss healthcare, cut expenses, and incur debt. The survey also indicates that the impact of inflation was not uniform amongst different groups.