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John Cornyn Introduces Bill to Lower Out-of-Pocket Drug Cost for Seniors

U.S. Senator John Cornyn has introduced the Share the Savings with Seniors Act, legislation aimed at reducing prescription drug costs for Medicare Part D beneficiaries with chronic health conditions. The bill is co-sponsored by a group of bipartisan Senators, including Jacky Rosen (D-NV), Thom Tillis (R-NC), and Peter Welch (D-VT).

The Bill addresses a long-standing issue in the prescription drug supply chain. Pharmacy benefit managers (PBMs) and insurers often negotiate significant rebates with drug manufacturers, but fail to pass those savings on to patients at the pharmacy counter. Seniors are often required to pay their share of prescription costs based on the drug's full list price, rather than the discounted negotiated price. This results in unnecessarily high out-of-pocket costs.

Cornyn noted that the PBMs and insurers have historically benefited from these negotiations while seniors bear the financial burden.

"By requiring rebate savings to pass to Medicare Part D beneficiaries for medicines that treat chronic conditions, this legislation would lower out-of-pocket costs for seniors," said Cornyn.

Senator Rosen emphasized the financial strain high drug prices have on families, while the other sponsors echo similar concerns.

"No one should have to break the bank to pay for life-saving medication," she said.

The bill specifically targets medications used to treat chronic conditions, where rebate pass-through is expected to improve medical adherence and reduce non-drug healthcare costs, such as emergency room visits. It will also ensure that medications within a therapeutic class are treated equitably to prevent insurers from favoring drugs with higher rebate margins.

If passed, the Share the Savings with Seniors Act could bring financial relief to millions of seniors managing chronic illnesses.

Raeylee Barefield

Raeylee Barefield is a student at the University of Texas at Austin pursuing a degree in Government. She enjoys reading, writing, and cooking in her spare time.

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