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
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • 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
Post
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

  • Iowans voice concerns that HMO tax bill could raise health insurance costs
  • House panel votes to raise certain taxes, transfer money to offset Medicaid shortfall
  • Iowa Medicaid temporary tax plan draws sharp public opposition
  • High-risk assets gaining attention from many Americans
  • LIMRA: Single premium pension risk transfer sales jump 132% in Q4 of 2025
More Advisor News

Annuity News

  • We can help find a loved one’s life insurance policy
  • 2025: A record-breaking year for annuity sales via banks and BDs
  • Lincoln Financial launches two new FIAs
  • Great-West Life & Annuity Insurance Company trademark request filed
  • The forces shaping life and annuities in 2026
More Annuity News

Health/Employee Benefits News

  • Lawsuit: CVS Caremark inflated drug costs via ‘manipulation scheme’
  • State Health Plan board approves three-tier provider network for 2027
  • In switching to original Medicare, beware of Medigap plan refusals
  • Iowans voice concerns that HMO tax bill could raise health insurance costs
  • House panel votes to raise certain taxes, transfer money to offset Medicaid shortfall
More Health/Employee Benefits News

Life Insurance News

  • Zocks Launches AI Assistant for Life Insurance to Help Producers Get Policies Issued Faster
  • We can help find a loved one’s life insurance policy
  • Record 2025 Results Underscore New York Life’s Financial Strength and Mutual Advantage
  • Where love meets preparation
  • National Farm Life Insurance Board Elects Dr. Kyle W. McGregor as Chairman
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

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

Your Cap. Your Term. Locked.
Oceanview CapLock™. One locked cap. No annual re-declarations. Clear expectations from day one.

Ready to make your client presentations more engaging?
EnsightTM marketing stories, available with select Allianz Life Insurance Company of North America FIAs.

Press Releases

  • LifeSecure Insurance Company Announces Retirement of Brian Vestergaard, Additions to Executive Leadership
  • RFP #T02226
  • YourMedPlan Appoints Kevin Mercier as Executive Vice President of Business Development
  • ICMG Golf Event Raises $43,000 for Charity During Annual Industry Gathering
  • RFP #T25521
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
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • 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
© 2026 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