Feds' U-turn on drug costs calms organ transplant patients - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
June 9, 2014 Newswires
Share
Share
Tweet
Email

Feds’ U-turn on drug costs calms organ transplant patients

Adam Smeltz, The Pittsburgh Tribune-Review
By Adam Smeltz, The Pittsburgh Tribune-Review
McClatchy-Tribune Information Services

June 09--Organ transplant recipients on Medicare are relieved by the Obama administration's change of course on regulating steep medication costs for them.

The administration had planned to relax an insurance coverage mandate for many transplant recipients, whose life-preserving medicine can cost more than $2,000 a month. The Centers for Medicare and Medicaid Services reversed that stance because of an avalanche of opposition from lawmakers and transplant recipients.

Two-time heart transplant recipient Rudy Molnar, 75, of Natrona Heights said the reversal is a relief for him and the transplant community. He estimated that, under the proposal, his out-of-pocket costs for transplant-related drugs could have jumped about 20 percent to $120 a month.

"There's a lot of people who can't even afford what they pay now for drugs," said Molnar, who has spent more than $4,500 since January for all of his prescriptions. "It does get kind of tight sometimes. They really put the squeeze on you with all the medications you're on."

Since 2006, a federal guarantee has mandated that private insurance plans providing prescription benefits for seniors and disabled beneficiaries on Medicare must cover "all or substantially all" medications in three categories. They are widely used antidepressants, antipsychotics and prescriptions that suppress the immune system and prevent rejection of transplanted organs.

In January, Medicare officials said the provision no longer was necessary to guarantee access to the drugs. They said dropping the rule could save millions of dollars for taxpayers and beneficiaries, whose out-of-pocket expenses often hover around $50 a month.

Plus, Medicare leaders argued, the widened availability of generic drugs could allow some regulations to be relaxed safely.

Lawmakers including Sen. Bob Casey, D-Scranton; Sen. Pat Toomey, R-Lehigh Valley; and U.S. Rep. Tim Murphy, R-Upper St. Clair, disagreed and said the revision could diminish access for patients in need.

Medicare and Medicaid Administrator Marilyn Tavenner throttled back in a letter to Congress on March 10, when she wrote that the administration would put the proposal on hold for 2015 while it collects more feedback.

An agency notice in the Federal Register on May 23 alerted the public.

"Given the complexities of this issue and stakeholder input, we did not finalize this proposal," Medicare officials wrote in a brief statement to the Tribune-Review. Tavenner, in her letter, left open the possibility that Medicare officials could introduce a revised measure "in future years."

Toomey plans to keep a close watch, spokeswoman E.R. Anderson said.

"The price and availability of prescription drugs is critical to many, and he continues to be mindful that changes can have real consequences for beneficiaries," Anderson said in a statement.

America's Health Insurance Plans, a national trade association for health insurers, and Downtown-based insurer Highmark Inc. did not answer questions about the development.

UPMC Health Plan supports access to needed prescriptions but fears "blanketing entire drug classes as 'protected' " when that can drive up costs without necessarily improving patient health, a spokeswoman wrote.

The possibility of another pitch to change the prescription coverage mandate worries Jim Gleason, president of the Transplant Recipients International Organization. The advocacy group, which includes about 100 members in the Pittsburgh area, is among more than a dozen that protested the January proposal.

"There's a concern that they (will) wait until everything calms down and then sneak it back in again," said Gleason, who lives in Edgewater Park, N.J.

Molnar, who leads the Pittsburgh chapter of TRIO, said federal agencies tend to "cut where it's easiest to get away with it."

Jack Silverstein, a kidney transplant recipient, said those who oversee the programs often don't understand the transplant community.

"I think that's the biggest problem. Most of them haven't had a transplant, so they don't know what's going on," said Silverstein, 68, of Monroeville, president of the Western Pennsylvania Kidney Support Groups. "The important thing is getting the word out to them."

Adam Smeltz is a staff writer for Trib Total Media. He can be reached at 412-380-5676 or [email protected].

___

(c)2014 The Pittsburgh Tribune-Review (Greensburg, Pa.)

Visit The Pittsburgh Tribune-Review (Greensburg, Pa.) at www.triblive.com

Distributed by MCT Information Services

Wordcount:  678

Older

Personal Injury Lawyer Franklin Strokoff of The Rothenberg Law Firm LLP Wins $1.75 Million Verdict In Bergen County for Car Accident Victim

Advisor News

  • Global economic growth will moderate as the labor force shrinks
  • Estate planning during the great wealth transfer
  • Main Street families need trusted financial guidance to navigate the new Trump Accounts
  • Are the holidays a good time to have a long-term care conversation?
  • Gen X unsure whether they can catch up with retirement saving
More Advisor News

Annuity News

  • Pension buy-in sales up, PRT sales down in mixed Q3, LIMRA reports
  • Life insurance and annuities: Reassuring ‘tired’ clients in 2026
  • Insurance Compact warns NAIC some annuity designs ‘quite complicated’
  • MONTGOMERY COUNTY MAN SENTENCED TO FEDERAL PRISON FOR DEFRAUDING ELDERLY VICTIMS OF HUNDREDS OF THOUSANDS OF DOLLARS
  • New York Life continues to close in on Athene; annuity sales up 50%
More Annuity News

Health/Employee Benefits News

  • Guess which country pays the most for health care
  • GUEST COLUMN: Working is no guarantee you’ll have health insurance
  • THE PUBLIC PULSE Sunday Public Pulse
  • Stafford woman's premiums set to rise to $2,240 a month Stafford woman's premiums set to rise to $2,240 a month
  • Dec. 15 last day for ACA health coverage starting Jan. 1
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • Legals for December, 12 2025
  • AM Best Affirms Credit Ratings of Manulife Financial Corporation and Its Subsidiaries
  • AM Best Upgrades Credit Ratings of Starr International Insurance (Thailand) Public Company Limited
  • PROMOTING INNOVATION WHILE GUARDING AGAINST FINANCIAL STABILITY RISKS ˆ SPEECH BY RANDY KROSZNER
  • Life insurance and annuities: Reassuring ‘tired’ clients in 2026
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Slow Me the Money
Slow down RMDs … and RMD taxes … with a QLAC. Click to learn how.

ICMG 2026: 3 Days to Transform Your Business
Speed Networking, deal-making, and insights that spark real growth — all in Miami.

Your trusted annuity partner.
Knighthead Life provides dependable annuities that help your clients retire with confidence.

Press Releases

  • National Life Group Announces Leadership Transition at Equity Services, Inc.
  • SandStone Insurance Partners Welcomes Industry Veteran, Rhonda Waskie, as Senior Account Executive
  • Springline Advisory Announces Partnership With Software And Consulting Firm Actuarial Resources Corporation
  • Insuraviews Closes New Funding Round Led by Idea Fund to Scale Market Intelligence Platform
  • ePIC University: Empowering Advisors to Integrate Estate Planning Into Their Practice With Confidence
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2025 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet