Representative Angie Craig, Colleagues Urge CMS to Reconsider Increase in Medicare Part B Premiums
In November, CMS announced a 14.5% increase in Medicare Part B premiums for 2022 – an increase largely driven by the exorbitant launch price of a newly approved Alzheimer’s drug
WASHINGTON, D.C. — Today, U.S. Representative Angie Craig led more than 30 of her colleagues in urging the Centers for Medicare & Medicaid Services (CMS) to reconsider a 14.5% increase in Medicare Part B premiums in 2022. Late last year, CMS announced that Medicare's Part B monthly premium for 2022 would increase by $21.60 – an increase largely driven by the exorbitant launch price of a newly approved Alzheimer's drug called Aduhlem. In their letter, the Members reminded CMS of the Biden Administration's promise to lower health care costs – especially for the nation's seniors – and urged further action to reduce costs for the American people.
"Much like President Biden, we promised to reduce prescription drug costs– particularly for older Americans. We cannot break our promise to the American people," wrote Representative Craig. "Nearly 64 million Americans rely on Medicare for their health care coverage, the majority of whom pay monthly Part B premiums. As the global pandemic rages on and prices rise in many sectors of the economy, our nation's seniors simply cannot afford this sudden and unnecessary increase in their health care costs."
Medicare officials announced that the unprecedented price increase – the largest dollar increase in the health insurance program's history – was due, in part, to the high price of Aduhlem. However, last week, Health and Human Services Secretary Xavier Becerra called on CMS to reevaluate the increase, citing a recent price reduction of Aduhlem from $56,000 to about $28,000. In their letter, the Members urged CMS to honor Secretary Becerra's request, arguing that the historic premium increases could prove unaffordable to the nation's seniors – especially amidst a deadly global pandemic that has already increased prices for Americans in a broad array of sectors.
Craig was joined in signing the letter by Representatives Cindy Axne (IA-03), Joyce Beatty (OH-03), Carolyn Bourdeaux (GA-07), Julia Brownley (CA-26), G.K. Butterfield (NC-01), Salud Carbajal (CA-24), Matt Cartwright (PA-08), Judy Chu (CA-27), Steve Cohen (TN-09), Jim Cooper (TN-05), Charlie Crist (FL-13), Sharice Davids (KS-03), Peter DeFazio (OR-04), Suzan DelBene (WA-01), Mike Doyle (PA-18), Eleanor Holmes Norton (DC), Eddie Bernice Johnson (TX-30), Mondaire Jones (NY-17), Derek Kilmer (WA-06), Rick Larsen (WA-02), Barbara Lee (CA-13), Tom Malinowski, (NJ-07), Betty McCollum (MN-04), Grace Meng (NY-06), Kathleen Rice (NY-04), Lisa Blunt Rochester (DE-AL), Dutch Ruppersberger (MD-02), Bobby Rush (IL-01), Kurt Schrader (OR-05), Kim Schrier (WA-08), Abigail Spanberger (VA-07), Tom Suozzi (NY-03), Marilyn Strickland (WA-10), Lori Trahan (MA-03), Lauren Underwood (IL-14), Peter Welch (VT-AL) and Nikema Williams (GA-5).
You can find the full text of the letter
January 18, 2022
The Honorable Chiquita Brooks-LaSure
Administrator
The Centers for Medicare and Medicaid Services
U.S. Department of Health and Human Services
7500 Security Boulevard
Baltimore, MD 21244
Dear Administrator Brooks-LaSure:
We write in support of Health and Human Services Secretary Becerra's recent request that the Centers for Medicare & Medicaid Services (CMS) reevaluate Medicare Part B's 2022 premium increase. The 14.5% increase hits seniors in our districts and across the country at a particularly vulnerable time. We urge the Centers for Medicare and Medicaid Services (CMS) to reevaluate its decision and spare our seniors from undue financial hardship.
As you know, Medicare beneficiaries are expected to experience a 14.5% increase in their Part B premiums in 2022, an unprecedented increase. A major factor driving that increase was CMS's need to build contingency reserves to cover the recently approved $56,000 a year Alzheimer's drug, Aduhelm. Given the uncertainty of Aduhelm's future coverage and how it could impact Medicare spending, CMS increased premiums to ensure there would be an adequate reserve.
Since then, Biogen announced they would decrease Aduhelm's list price from $56,000 to $28,200. Additionally, CMS made a preliminary coverage decision to only cover Aduhlem for patients participating in clinical trials. In light of the list price decrease, the Secretary requested that CMS revisit its previous decision. We echo the Secretary's request to reverse the Medicare Part B premium increases for 2022.
Much like President Biden, we promised to reduce prescription drug costs– particularly for older Americans. We cannot break our promise to the American people. Nearly 64 million Americans rely on Medicare for their health care coverage, the majority of whom pay monthly Part B premiums. As the global pandemic rages on and prices rise in many sectors of the economy, our nation's seniors simply cannot afford this sudden and unnecessary increase in their health care costs.
More broadly, we must take additional action to lower the soaring cost of prescription drugs. We cannot continue to ask the American people to underwrite the pharmaceutical industry's outrageous profits.
We share CMS's commitment to providing high quality and affordable coverage and ensuring that Medicare is here to stay for future generations. We stand ready to serve as your partners in Congress on this critical issue. Thank you very much for your attention.
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