Estimated changes to employer-sponsored health insurance premiums due to the drug inflation rebate provision of the Build Back Better Act

Estimated changes to employer-sponsored health insurance premiums due to the drug inflation rebate provision of the Build Back Better Act

Collection:
Health Policy and Services Research
Author(s):
Simpson, Michael, author
Holahan, John, author
Contributor(s):
Robert Wood Johnson Foundation, issuing body.
Urban Institute, issuing body.
Publication:
Washington, DC : Urban Institute, December 2021
Language(s):
English
Format:
Text
Subject(s):
Drug Costs
Health Benefit Plans, Employee
United States
Genre(s):
Technical Report
Abstract:
The Build Back Better Act (BBBA), as passed by the House of Representatives, has several provisions related to prescription drug pricing. The provisions would allow Medicare negotiations over a selected number of high-cost prescription drugs, prohibit implementation of a Trump administration rule that would effectively end Medicare rebates, newly cap Medicare beneficiaries’ out-of-pocket spending on prescription drugs, and introduce inflation rebates on most prescription drugs. The inflation rebates would apply to all drug purchasers except Medicaid, including employer-sponsored insurance (ESI) plans, other commercial insurers, and Medicare. However, this provision has received relatively little attention. Here we estimate the impact of the BBBA’s inflation rebate provision on employee wages and, assuming employers’ savings on reduced premiums are passed on to workers via higher wages, ESI premiums.
Copyright:
Reproduced with permission of the copyright holder. Further use of the material is subject to CC BY-NC-DC license. (More information)
Extent:
1 online resource (1 PDF file (4 pages))
NLM Unique ID:
9918367874106676 (See catalog record)
Permanent Link:
http://resource.nlm.nih.gov/9918367874106676