Medicare Premium Hike Will Help Build ‘Contingency Fund’ For Alzheimer’s Drugs

But CMS cautions that the announcement should not be read as a preview of its upcoming national Medicare coverage decision on Aduhelm and similar treatments.

Big Drug Expenses Ahead For Medicare? • Source: Alamy

The Medicare Part B standard monthly premium will increase $21.60 to $170.10 in 2022, an unprecedented spike in dollar terms, due to factors including the need to set aside reserves to potentially pay for Biogen, Inc.'s and Eisai Co., Ltd.’s high-cost Alzheimer’s drug, Aduhelm, and similar treatments, the Centers for Medicare and Medicaid Services announced 12 November.

Part B premiums will increase 14.5% in 2022, far outstripping earlier estimates. Deductibles will rise by a similar percentage, from $203 this year to $233 in 2022. The announcement also notes that seniors will get a big cost of living increase in Social Security payments that will cover the cost of the premium increase. Nevertheless, the increase gained widespread attention and highlights the need for drug pricing reform, according to CMS

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