On CNN’s “State of the Union,” Sen. Rick Scott, R-Fla., said, “All Democrats in the Senate and House voted to cut $280 billion out of Medicare just two months ago.” That’s False: It wasn’t a budget cut. It’s getting the same medicines for lower prices.
By Tom Kertscher • October 20, 2022
After combining the drug-cost savings with the bill’s other health care provisions, Medicare beneficiaries would see decreases in premiums and savings, including through a $2,000 annual cap on out-of-pocket costs, the committee projected.told PolitiFact in August"Those are savings resulting mostly from the government negotiating prescription drug prices and limiting drug price increases to inflation," Ellis said.
But even if the impact on future drugs is significantly greater than that, as the industry argues, it wouldn’t support what Scott said. At most, the Democratic bill would have saved the government $280 billion while having some longer-term, negative, secondary impacts. It would not simply be a cut to Medicare’s budget.Scott said,"All Democrats in the Senate and House voted to cut $280 billion out of Medicare just two months ago.
This claim is wrong. The federal government would see its outlays reduced between $237 billion and $288 billion as a result of a Medicare drug-price negotiation provision. However, that reduction wouldn’t represent cuts to Medicare beneficiaries. Rather, by leveraging Medicare’s market power, the government would be able to pay less to provide the same medicines.
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