Obama targets drug costs

President Obama presented a deficit reduction plan on Wednesday that includes proposals to reduce Medicare's spending on prescription drugs, cut the exclusivity period for biologics to enable quicker biosimilar competition, and give the Independent Payment Advisory Board (IPAB) more power to reduce Medicare spending.

In a speech outlining his plan, Obama said the proposal would "cut spending on prescription drugs by using Medicare's purchasing power to drive greater efficiency." A background document distributed by the White House said Obama's Medicare drug proposal is "similar to what was called for by the bipartisan Fiscal Commission." The commission recommended extending Medicaid drug rebates to "dual eligibles," Medicaid beneficiaries who receive drug coverage under Medicare Part D. This would reduce spending by $49 billion over a decade, according to the commission. ...