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

  • The hidden flaw in insurance AI adoption for advisors and carriers
  • Rising healthcare costs impact 401(k) accounts
  • What advisors think about pooled employer plans, alternative investments
  • AI, stablecoins and private market expansion may reshape financial services by 2030
  • Cheers to summer, and planning for what comes next
More Advisor News

Annuity News

  • MetLife Inc. (NYSE: MET) Climbs to New 52-Week High
  • The Standard and Pacific Guardian Life Announce Entry into Agreement to Transition Individual Annuities Business
  • AuguStar Retirement launches StarStream Variable Annuity
  • Prismic Life Announces Completion of Oversubscribed Capital Raise
  • Guaranteed income streams help preserve assets later in retirement
More Annuity News

Health/Employee Benefits News

  • Reduced health insurance payments for hospital births had a bigger impact on sterilization rates than correcting an injustice
  • Reports Summarize Pulpotomy Findings from National Health Insurance Service Ilsan Hospital (Trends and Outcomes of Vital Pulp Therapy in Korea: A Nationwide Retrospective Cohort Study): Surgery – Pulpotomy
  • Reports on Managed Care Findings from Harvey L. Neiman Health Policy Institute Provide New Insights (Self-Interpretation of Imaging Studies by Ordering Providers: Frequency and Associated Provider and Practice Characteristics): Managed Care
  • Investigators at Harvard Medical School Detail Findings in Managed Care (What Happens When Coverage Is Cut? Looking Backward and Forward From the One Big Beautiful Bill): Managed Care
  • Researchers at Weill Cornell Medicine Cornell University Release New Data on Managed Care (Trends in prescription drug coverage restrictions in Medicare, Medicaid, and commercial insurance plans, 2011-2019): Managed Care
More Health/Employee Benefits News

Life Insurance News

  • Shocking death of Kyle Busch renews debate over IUL plan
  • WoodmenLife launches final expense life insurance offering
  • The Standard and Pacific Guardian Life Announce Entry into Agreement to Transition Individual Annuities Business
  • Symetra Wins 2026 Shorty Award for ‘Plan Well, Play Well’ Social Media Campaign with Sue Bird
  • Rehabilitator: PHL Variable liquidation payouts could exceed guaranty caps
More Life Insurance News

- Presented By -

NEWS INSIDE

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

FEATURED OFFERS

Why Blend in When You Can Make a Splash?
Pacific Life’s registered index-linked annuity offers what many love about RILAs—plus more!

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

Bring a Real FIA Case. Leave Ready to Close.
A practical working session for agents who want a clearer, repeatable sales process.

Discipline Over Headline Rates
Discover a disciplined strategy built for consistency, transparency, and long-term value.

You Could Be Losing Up to 20% of Your Commissions
GreenWave helps you find, fix, and prevent commission errors.

Press Releases

  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
  • Sequent Planning Recognized on USA TODAY’s Best Financial Advisory Firms 2026 List
  • Highland Capital Brokerage Acquires Premier Financial, Inc.
  • ePIC Services Company Joins wealth.com on Featured Panel at PEAK Brokerage Services’ SPARK! Event, Signaling a Shift in How Advisors Deliver Estate and Legacy Planning
  • Hexure Offers Real-Time Case Status Visibility and Enhanced Post-Issue Servicing in FireLight Through Expanded DTCC Partnership
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