WASHINGTON — The Obama administration, in an abrupt about-face, said on Monday it would drop proposed changes to Medicare drug coverage that met wide opposition on grounds they would harm health benefits for the elderly and disabled.
Late last week, more than 370 organizations representing insurers, drug makers, pharmacies, health providers and patients urged the Centers for Medicare and Medicaid Services to withdraw changes it proposed for Medicare Part D.
One of the federal government's most successful and cost-effective health care programs, Part D provides drug benefits for the elderly and disabled through private insurers to 36 million enrollees.
Critics said the changes, if adopted, could not only undermine Part D benefits, but affect drug benefits available through Medicare Advantage, a program that allows Medicare beneficiaries to obtain their major medical coverage through private insurers.
“Given the complexities of these issues and stakeholder input, we do not plan to finalize these proposals at this time. We will engage in further stakeholder input before advancing some or all of the changes in these areas in future years,” CMS Administrator Marilyn Tavenner said in a letter sent to members of Congress.
The proposals, which included a plan to limit the types of drugs covered, were opposed by Republicans and Democrats in Congress.
Republicans had begun to look for ways to leverage popular anger over the changes into campaign attacks on Democratic incumbents who could be vulnerable in November's election showdown for control of Congress.
Elated critics of the proposed changes said the government had effectively agreed to start over in the face of broad, bipartisan opposition.
“We applaud CMS Administrator Tavenner for the agency's sound judgment on this issue,” said Mary Grealy, president of the Healthcare Leadership Council, a coalition member that represents chief executives from the health care industry.
Others noted the move curtails a proposal to broaden pharmacy access and could hurt Medicare beneficiaries in rural areas and underserved neighborhoods who might have benefited from the change.
