phrma logo

PhRMA

PhRMA Sites

Login

Explore Member-Only Resources

Access exclusive advocacy, policy, and research materials through the member site.

Login now

About

About

Our Agenda

Our Agenda

Policy Issues

We believe that patients should have access to innovative medicines.

Learn More

Innovation Ecosystem

Intellectual Property

Research & Development

Future of Medicine

Government Price Setting

International

Innovation Ecosystem

Patient Access & Affordability

PBMs & Middlemen

Hospitals and 340B

Insurance Coverage

Cost of Medicines

Medicare & Medicaid

Patient Access & Affordability

Resources

Our mission is to conduct effective advocacy for public policies that encourage the discovery of important, new medicines for patients by biopharmaceutical research companies.

Learn More

Resources

Resources

Newsroom

Newsroom

Blog

Blog

America's Medicines

PhRMA Foundation

PhRMA Foundation Logo

Voters for Cures

VotersForCures.org Logo

Working for Cures

workersforcures.org logo

This is Innovation

Innovation.org logo

View More

Search in PhRMA

Find resources, news, and articles related to policy issues and scientific innovation.

What are you looking for?

Most Recent

Policy Paper

Press

Blog

Report

Fact Sheet

Event

Resource

Pages

Leader

Author

Comment

not used title

not used title

Today, the Pharmaceutical Research and Manufacturers of America (PhRMA) submitted comments in response to the CMS proposed rule, “Modernizing Part D and Medicare Advantage to Lower Drug Prices and Reduce Out-of-Pocket Expenses.” The comments focused on significant concerns about the impact of these proposals on access for the sickest and most vulnerable Medicare Part D beneficiaries. Below are a few key excerpts.

  • Overall, the changes to the six protected classes should not be finalized: PhRMA strongly opposes proposed changes to the six protected classes policy. The protected class policy affords access to vital and life-saving medicines for patients with serious and debilitating conditions. The administration is proposing to weaken the current six protected class policy in several ways, notably by allowing health plans to force patients who are stable on a medicine to go through prior authorization or step therapy. We have several concerns with these proposed changes. The proposed changes could have serious health consequences for patients and are unnecessary given that plans already have tools to manage utilization in these classes and significant savings from the proposed changes are unlikely. We also have legal concerns with the proposed changes, which are inconsistent with Part D’s non-discrimination protections.
  • Changes jeopardize coverage for vulnerable beneficiaries who need access to the full range of necessary medicines: For beneficiaries relying on one or more medicines in the protected classes, treatments largely are not interchangeable. Instead, patient responses to treatment are-unique and disparate, where seemingly “similar” patients may experience clinically meaningful differences when exposed to the same therapy. For example, for patients with epilepsy, it can take years to find the optimal combination of treatments to manage and prevent seizures. For patients with schizophrenia or depression, it may take several tries to find a medicine that controls symptoms and has manageable side effects. The National Institutes of Health states that when it comes to treating HIV “the best regimen for a person depends on their individual needs,” thereby necessitating that patients have access to the full range of therapies. For transplant patients on anti-rejection drugs, the stakes are obviously very high if they do not have access to the appropriate medicine.
  • Weakening the six protected classes is unlikely to result in significant savings because Part D plans already have tools to manage utilization: Cost containment is clearly one of the Administration’s primary motivations in pursuing changes to the protected classes; however, allowing plan sponsors to place additional restrictions on access to medicines in the protected classes is unlikely to produce substantial Part D savings. Plan sponsors are already able to manage access to most drugs in the six protected classes. Although the Administration contends that allowing insurers even more tools to manage utilization or exclude drugs from the six protected classes is necessary to constrain costs, clear evidence shows that the current level of formulary flexibility has been successful in both driving utilization of generics and keeping price growth in check.
  • CMS’ proposed exceptions based on cost considerations are a significant, unexplained departure from current policy and would harm patients: The proposed rule exceptions represent a sharp and unexplained change from CMS’ established position which, if finalized and implemented, will have a detrimental impact on the protected class patient population. These proposed exceptions sharply diverge from the understanding of the protected classes policy that CMS and Congress have long shared — that the policy protects vulnerable beneficiaries with serious diseases from interruptions in their therapy and thus reflects “clinical concern[s]”— and contradicts the existing regulation providing that new exceptions will be “based upon scientific evidence and medical standards of practice.”
  • Alternative policies could achieve the Administration’s goals without putting patients at risk: If CMS wishes to address patient affordability challenges caused by rising list prices, there are more appropriate policy solutions that would not put patients’ health at risk. The changes to six protected classes being proposed by the administration are unlikely to lower patients’ out-of-pocket costs for brand medicines and could harm patients by introducing access barriers. In PhRMA’s comments on the HHS Blueprint to Lower Drug Prices and Reduce Out-of-Pocket Costs, we supported several policies that would promote competition and improve patient affordability. Within Part D, we urge the Administration to lower patient costs by requiring plan sponsors to pass through a share of discounts and rebates to Part D beneficiaries at the point of sale. This is consistent with CMS’s discussion in this proposed rule of passing through pharmacy price concessions. Extending this policy to manufacturer rebates could yield lower out-of-pocket costs immediately (upon taking effect) for millions of beneficiaries while also generating multi-billion dollar savings to the federal government over a ten year window.
  • Also included in this rule, step therapy for Part B medicines puts patients at risk: Reversing long-standing policy, CMS is proposing to allow Medicare Advantage plans to use step therapy for Part B medicines.  Step therapy policies – often referred to as “fail first” policies – require patients to demonstrate that a medicine preferred by their health plan is not effective or tolerable before receiving the treatment recommended by their provider. Patients who rely on Part B medicines frequently have serious conditions that require intensive management such as cancer, rheumatoid arthritis (RA) and other autoimmune conditions, severe infections, multiple sclerosis, macular degeneration, genetic disorders and other rare diseases. Step therapy puts vulnerable patients who need access to life-saving medicines covered by Part B at risk by increasing access and adherence issues that can lead to poor health outcomes and increased costs. Step therapy policies also interfere with provider autonomy and increase their administrative burden. We strongly oppose the use of step therapy in Part B; moreover, we believe that CMS does not have the legal authority to allow Medicare Advantage plans to impose step therapy restrictions that are not required by Original Medicare.

Medicare Part D has been successfully providing seniors with comprehensive drug coverage for more than a decade, and one of the cornerstones of the program has been to ensure the sickest and most vulnerable patients have access to the clinically critical medicines they rely on, under the six protected classes policy. This proposed rule would weaken that policy to such an extent that the classes could no longer be considered truly “protected.” For patients with serious and complex health conditions like HIV/AIDS, cancer and mental illness, the changes in the rule would reduce adherence to their medicines, jeopardizing their health, increasing their need for inpatient care and resulting in poorer health outcomes for seniors and higher costs for taxpayers.

Read the full comments here.

Juliet Johnson

is a former deputy vice president of public affairs at PhRMA focusing on federal advocacy communications.

Juliet Johnson

What AARP isn’t telling seniors about MFN

August 24, 2026

CMS proposal could discourage patient-centered innovation

August 18, 2026

Nearly 1 in 4 patients initially denied access to IRA medicines

August 6, 2026

Medicare Part D at 20: Building on a strong foundation

July 23, 2026

MFN won’t lower costs when insurers call the shots

May 8, 2026

Guest Blog: How MFN price controls could decide my health care

April 30, 2026

States should avoid repeating the IRA’s price‑setting mistakes 

April 21, 2026

CMS’ MFN proposals won’t help seniors despite lofty promises

April 9, 2026

Voters voice concerns on government price controls

April 7, 2026

Insurers routinely block seniors’ access to medicines in Medicare Part D

March 18, 2026

MFN undermines U.S. biopharmaceutical innovation

February 25, 2026

CMS puts patients and innovation at risk with MFN

February 24, 2026

New list of selected drugs highlights growing consequences of government price setting

January 28, 2026

Guest blog: Making the most of the Medicare Prescription Payment Plan

December 8, 2025

The IRA’s price setting doesn’t guarantee lower costs or better access

November 17, 2025

What seniors can expect this open enrollment

October 14, 2025

Part D premiums are going up, while choices are going down

October 8, 2025

Delivering breakthroughs and lower costs for patients

September 8, 2025

Celebrating 60 Years of Medicare

July 30, 2025

Medicare patients face higher drug costs, despite IRA promises

July 22, 2025

Medicare Part D plans initially denied medicines for more than 70% of patients in four chronic disease areas

June 16, 2025

PBMs launch new ad campaign to block reforms

May 5, 2025

Health care practitioners sound the alarm on middlemen-imposed barriers to patient care, need for policy change

March 13, 2025

CMS, don’t fall behind the rest of the medical community on obesity

February 14, 2025

Patients are losing as government price setting continues

January 17, 2025

A new administration poses new opportunities for patient access

December 17, 2024

CMS needs to do better

November 4, 2024

Americans speak out on health insurance barriers and need for policy change, according to the latest Patient Experience Survey

October 28, 2024

Is CMS paying attention to the growing access barriers for Medicare patients under the IRA?

October 18, 2024

Did the administration consider the importance of blood cancer medicines to patients in price setting process?

October 8, 2024

Did the administration consider the importance of blood clot medicines to patients in the price setting process?

September 25, 2024

The Inflation Reduction Act could increase costs and reduce access for millions of seniors

September 17, 2024

Are the IRA’s Part B inflation rebates lowering costs for Medicare patients? No.

September 16, 2024

Did the administration consider the value of innovative diabetes medicines in price setting process?

August 28, 2024

New survey: Insurers confirm IRA will reduce patient treatment options

August 20, 2024

The unintended consequences of government price setting in Medicare Part D

August 16, 2024

Don’t put the government between patients and their medicines

August 7, 2024

What is the low-income subsidy program and how is it changing?

July 31, 2024

Three things to know about the United Nations’ new HIV/AIDS report

July 31, 2024

Case study: How seniors could face access disruptions because of the IRA’s price setting provisions

July 22, 2024

PhRMA reiterates concerns with IRA price setting program, urges CMS to mitigate harm

July 3, 2024

The IRA could lead to higher out-of-pocket costs for 3.5 million Medicare patients in 2026

June 25, 2024

ICYMI: Misaligned policies undermine patient access

June 6, 2024

IRA is already negatively impacting access to medicines in Part D

April 25, 2024

New study finds insurers and PBMs increasing access restrictions in Medicare Part D

April 16, 2024

3 Takeaways from POLITICO’s Health Care Summit

April 3, 2024

As the administration continues to falsely claim Medicare “negotiation,” keep these points in mind

February 1, 2024

New analysis of patient access restrictions in the United Kingdom

November 21, 2023

ICYMI: 3 takeaways on the IRA’s unintended consequences from America’s Physician Groups’ 2023 annual fall conference

November 6, 2023

ICYMI: Government watchdog report finds patients in Medicare Part D paid billions more for medicines than insurers and PBMs

September 28, 2023

IRA threatens seniors’ access to robust treatment options

September 26, 2023

Medicare Prescription Payment Plan will benefit patients if implemented correctly

September 21, 2023

Correcting the record: IRA’s government price setting provisions are unconstitutional

September 8, 2023

IRA changes to Part D risk access to medicines

August 24, 2023

With the first list of medicines out, let’s not forget why government price setting is bad policy

August 22, 2023

One year later IRAs unintended consequences are becoming reality

August 16, 2023

AARP’s latest misleading report

August 11, 2023

Navigating the Patient Experience Survey: Protecting Lifelines to Access and Innovation

July 26, 2023

Four things for CMS to keep in mind as they implement changes to Part D

June 7, 2023

CMS guidance on IRA price setting process doubles down on bad policy

April 14, 2023

A guide to MedPAC’s Part B vote today

April 13, 2023

MedPAC proposal threatens access to medicines in Part B

April 6, 2023

States can support access to medicine as COVID-19 Public Health Emergency ends

April 5, 2023

CMS coverage policy is detrimental to Alzheimer’s patients

April 4, 2023

How Part B’s ASP system helps control costs for the government and seniors

March 30, 2023

Medicare Part B spending in four points

March 28, 2023

Recognizing National Glaucoma Awareness Month

February 1, 2023

Minnesota lawmakers are letting PBMs off the hook, and threatening patients’ access to medicines

January 31, 2023

In their own words: Insured Americans support policy reforms that address access and affordability concerns

December 14, 2022

Medicare Part D open enrollment and what recent changes mean for beneficiaries

November 17, 2022

Many seniors are paying more for Part D medicines than their insurer

October 18, 2022

Busting 3 Myths About Copay Coupons

October 5, 2022

A key fact the White House is reluctant to admit

September 27, 2022

A key fact the White House is reluctant to admit

September 27, 2022

Navigating the patient experience: Burdens and barriers standing between patients and their care

September 12, 2022

CMS coverage policies restrict patient access to important treatment options for Alzheimer’s disease

September 1, 2022

This week’s reading list: All the reasons the Senate-passed drug pricing bill is bad policy

August 10, 2022

Myth vs. Fact: The Senate’s latest price setting proposal

August 5, 2022

ICYMI: Patients across the country are sharing concerns about government price setting

August 3, 2022

The Senate’s latest price setting proposal will undermine U.S. economic growth

August 3, 2022

Celebrating Medicare’s 57th anniversary

August 2, 2022

New analysis finds deeper impact of drug pricing bill on biopharmaceutical researchers

August 1, 2022

ICYMI: A patient, physician, biotech investor and industry leaders warn about the dangers of government price setting bill

July 29, 2022

The Senate’s latest price setting proposal will undermine: Our health care system

July 28, 2022

The Senate’s latest price setting proposal will undermine: Patient access to medicines

July 26, 2022

The Patient Perspective: Government price-setting harms patients

July 22, 2022

New research shows competition driven by biosimilars helps control costs in Part B

July 19, 2022

Polling continues to show voters reject so-called Medicare “negotiation” once they learn about consequences for patients

July 12, 2022

CMS coverage decision restricts access to treatments for Alzheimer’s disease

June 22, 2022

Report finds PBMs are increasingly restricting patient access to medicines

May 25, 2022

Spotlighting a growing mental health challenge

May 9, 2022

Annual projections from NHE compared to actual health care spending

May 5, 2022

Three charts show how the Medicare Part D program could be improved to work better for seniors and people with disabilities

April 27, 2022

Part D 101: Three charts show how the program provides comprehensive prescription drug coverage

April 26, 2022

Government price setting leaves behind families counting on new medicines

February 23, 2022

Part B 101: Three charts show the program helps control costs for health care system and enrollees

February 18, 2022

PhRMA submits comments urging CMS to withdraw coverage proposal

February 11, 2022

Government price setting won’t stop insurers from shifting costs to patients

February 2, 2022

Research and development continues long after a medicine is initially approved

February 1, 2022

It’s a new year, but sadly Congress is still pursuing flawed price setting policies

January 25, 2022

Post-approval research save lives. Why is Congress trying disincentivize it?

December 17, 2021

A price control by any other name would still put patients at risk and threaten innovation

December 9, 2021

Making medicines more affordable: Making insurance work like insurance

December 8, 2021

3 things to know about the importance of post-approval research and development

December 6, 2021

New data show insurers and PBMs increase barriers to care

December 2, 2021

Guest post: Congress should not put future innovation at risk

November 29, 2021

Insurance design barriers can impact patient adherence and can lead to poor health outcomes

November 23, 2021

What is missing in the current drug pricing plan

November 23, 2021

ICYMI: PhRMA CEO speaks at STAT Summit about government price setting

November 19, 2021

Three things to know about so-called Medicare negotiation polling

November 18, 2021

In the current health care debate, Congress has lost sight of what matters to U.S. voters

November 15, 2021

Making medicines more affordable: Modernizing Medicare

November 11, 2021

What they are saying: Government price setting for medicines is not the answer

November 4, 2021

CMS finds medication adherence saved Medicare up to 46.6B in avoided health care costs between 2013 and 2018

October 19, 2021

The patient experience: Out-of-pocket costs are driving patients affordability and access challenges

October 19, 2021

ICYMI: New study confirms policies like H.R. 3 could significantly reduce drug development

October 18, 2021

New poll shows Americans reject Medicare negotiation once they learn more about the policy

October 15, 2021

What is Kaiser Family Foundation up to?

October 12, 2021

New report shows 3 in 10 Americans that have insurance still face a financial barrier to care

October 7, 2021

Industry leaders discuss the impact of the drug pricing debate

September 23, 2021

Five reasons tying VA prices to Medicare Part D misses the mark

September 22, 2021

America’s biopharmaceutical companies to Congress: Government “negotiation” is the wrong approach

September 15, 2021

Recent polling misrepresents public support for Medicare “negotiation”

August 31, 2021

What they’re saying: Patient advocates want to protect Medicare from government interference

August 24, 2021

Myth vs. fact: Polling and Medicare “negotiation”

August 12, 2021

ICYMI: Event spotlights how we can make Medicare work better for patients

August 4, 2021

The future of the rebate rule: Will policymakers stand with patients?

August 2, 2021

Celebrating Medicare’s 56th anniversary

July 30, 2021

Government “negotiation” could have devastating consequences for Medicare enrollees

July 23, 2021

Protecting Medicare from government interference

July 21, 2021

Data shows voters strongly support protecting access to their medicines

July 15, 2021

Medicare “negotiation” proposals threaten Americans’ access to medicines

June 30, 2021

Out-of-pocket trends in Medicare Part D show rising costs for seniors

May 24, 2021

The ABCs (and Ds) of Medicare

May 13, 2021

ICYMI: Bipartisan lawmakers urge new administration to oppose changes to six protected classes policy

March 11, 2021

Getting the 340B program back on track in 2021

March 10, 2021

Key excerpts: PhRMA submits comments to keep the six protected classes protected

February 19, 2021

Action needed to preserve the six protected classes

February 3, 2021

Key facts: The final rebate rule will be a positive change for patients

January 19, 2021

End of year Part D reading List

December 18, 2020

New analysis finds stark difference in coverage of breast cancer medicines for seniors in the United States and England

December 10, 2020

No matter how you look at it, the Most Favored Nation rule is bad policy

December 1, 2020

Final rebate rule represents right way to change Medicare

December 1, 2020

Open Enrollment: How to find a Medicare plan that meets your needs

October 14, 2020

Three reasons why repealing the Part D non-interference clause is a bad idea

October 1, 2020

Growth in innovative, value-based contracts holds promise for the health system and for patients

September 24, 2020

National Medicare Education Week: The history of Medicare Part D

September 15, 2020

Innovative contracts drive access for patients and value for the system

September 9, 2020

How Medicare Part D supports patients

September 1, 2020

Supporting access to vaccines for Part D beneficiaries

August 12, 2020

Medicare’s 55th anniversary: Celebrating the success of Part D

July 30, 2020

Three reasons why MedPAC’s latest Part D proposal would be bad for patients

July 14, 2020

ICYMI: Patients saved nearly $800,000 out of pocket through innovative contracting arrangements

April 20, 2020

PhRMA submits comments on CMS’s Part D specialty tier proposal

April 7, 2020

PhRMA comments on HHS proposed rule on manufacturer cost-sharing assistance and accumulator adjustment programs

March 3, 2020

Addressing barriers that inhibit value-based contracts

February 21, 2020

Three reasons the Administration should abandon its International Pricing Index proposal

January 31, 2020

New data show how ICER’s value framework could prevent or delay access to treatments for Medicaid patients across the country

November 4, 2019

Event tomorrow: Maintaining America’s leadership in access and innovation

October 16, 2019

Pelosi’s radical plan would leave Alzheimer’s patients behind

October 16, 2019

What they are saying: Broad opposition to Pelosi’s radical drug pricing plan

October 10, 2019

Guest Post: Following my stroke, having access to ground-breaking medical innovation has never been more important

September 4, 2019

Three reasons the Senate Finance package is the wrong approach for patients

August 26, 2019

New analysis: Government intervention in Part B threatens patient access to medicines

August 19, 2019

Three things to know about the Part D GAO report

August 16, 2019

Setting the record straight on international reference pricing

July 16, 2019

No matter how you structure it, government arbitration is wrong for Medicare drug coverage

June 27, 2019

What you should know: Government arbitration is the wrong way to change Medicare

June 10, 2019

By the numbers: A look at the Part B International Pricing Index Model

June 6, 2019

How the rebate rule would help reduce patients’ out-of-pocket costs

June 3, 2019

Ask About Adherence: Improving adherence among osteoporosis patients could save up to $6.52 billion

May 29, 2019

Ask About Adherence: OIG proposed rule to reform the rebate system could improve adherence

May 15, 2019

4 Things to know about the IQVIA “Medicine Use and Spending” report

May 9, 2019

Event tomorrow: Improving access and affordability for America’s seniors

May 7, 2019

Fact Check: How the Part B International Pricing Index Model replaces market competition with government-set prices

May 3, 2019

Six policy solutions to help patients afford their insulin

April 9, 2019

PhRMA comments on OIG proposed rule to reform the rebate system

April 8, 2019

Fact Check: How the Part B International Pricing Index model threatens patient access

March 29, 2019

OIG proposed rule could help strengthen the Part D market

March 28, 2019

Rebate rule would help ensure seniors with diabetes don’t pay more for their medicine than their insurer

March 25, 2019

Bipartisan lawmakers urge Administration to rethink proposed changes to six protected classes policy

March 22, 2019

New analysis shows 820,000 prescriptions would be in jeopardy if ICER’s value framework is used in Medicaid

March 20, 2019

OptumRX: Sharing rebates with patients is “worth it”

March 18, 2019

Changes to the six protected class policy are the wrong prescription for Medicare and HIV patients

March 15, 2019

New analysis finds Average Sales Price system has led to significant cost savings for Medicare and seniors

March 7, 2019

New “Prescription for Medicare” campaign focuses on impacts of wrong and right solutions for Medicare

March 6, 2019

Repealing Part D noninterference clause threatens access and choice for America’s seniors

March 5, 2019

New study shows why insurers should share rebates with Medicare Part D beneficiaries on a mandatory basis

February 14, 2019

In survey, PhRMA member companies highlight impact of IPI on R&D

February 5, 2019

New research shows changes to the six protected classes would harm most vulnerable patients and are unnecessary

January 24, 2019

Keep the Six Protected Classes, protected

January 22, 2019

ICYMI: New study reinforces dangers of proposed IPI model

January 15, 2019

PhRMA comments to administration on International Pricing Index Model

January 3, 2019

ICYMI: WSJ and NYT highlight concerns with Part B International Pricing Index Model

December 19, 2018

Groups sound the alarm on administration’s new Part B proposal

November 14, 2018

4 things you need to know about the administration’s latest Part B proposal

November 5, 2018

PhRMA submission to the 2019 National Trade Estimate Report urges action to protect U.S. biopharmaceutical innovation

November 2, 2018

Stay current on policy making

Sign up for email updates and follow us on social. 

About

Our Agenda

Policy Issues

Resources

Blog

Contact Us

Privacy Policy

Terms of Service

Facebook

Facebook

X

Twitter X

LinkedIn

LinkedIn

Instagram

instagram logo

America's Medicines

PhRMA Foundation

Voters for Cures

Working for Cures

Innovation.org

Please type your email

Success!

You've been added to the list