MedPAC urges Congress to make insurers rein in soaring drug costs: 5 things to know

The Medicare Payment Advisory Commission wants Congress to cut some Medicare payments to insurance companies to make them contain rising prescription drug costs, according to The New York Times.
Here are five things to know about MedPAC's recommendations.

1. Federal officials currently reimburse insurers for 80 percent of a Medicare beneficiary's drug costs exceeding a certain "catastrophic" level — roughly $7,500 this year, according to the report. MedPAC wants Congress to cut the federal share of catastrophic drug costs to 20 percent.

2. MedPAC said Congress should also get rid of Medicare beneficiaries' 5 percent share of drug costs above the threshold.

3. The recommendations come amid the rising cost of drugs. With the rising costs, Medicare beneficiaries could end up with thousands of dollars in out-of-pocket costs, even with prescription coverage, and the government is subsidizing more of the benefit than originally intended, according to the report.

4. Federal spending on prescription drugs under the Medicare Part D rose 16.6 percent last year, to $75 billion, partly because of new drugs to treat hepatitis C, according to The New York Times. The Congressional Budget Office expects similar growth in 2016.

5. The recommendations will be included in MedPAC's June report to Congress.