Vice President Kamala Harris wants to expand Medicare's $2,000 annual cap on out-of-pocket drug costs for those with private insurance, but it is unclear how many people would benefit from the plan, Politico reported Sept. 24.
Four things to know:
1. In 2018, less than 1% of people with a large-employer plan spent more than $2,000 out of pocket on drugs, Politico reported, citing data from KFF. Another 2.6% had out-of-pocket costs exceeding $1,000.
2. KFF Vice President Cynthia Cox told Politico she thinks a spending cap on prescription drugs might mean higher out-of-pocket spending on other types of services.
"We have seen employers … are paying a larger share of prescription drug costs over time whereas they are paying a smaller share of hospital costs over time," she told the new outlet.
3. The proposal would need to pass Congress. Republicans, who supported capping out-of-pocket costs in Medicare, have mostly remained silent on the plan to date, according to the report. Sen. Bill Cassidy, R-La., ranking member of the Health, Education, Labor and Pensions Committee, said he is concerned it might raise overall healthcare costs.
4. Senate Finance Committee Chair Ron Wyden, D-Ore., said Ms. Harris is "obviously trying to help folks who are getting clobbered with these huge healthcare costs" and said he is going to look at the proposal seriously, according to the report.