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The unit cost of Cuprimine (above) increased 2,143% from 2011-2015. Photo: Roberto Machado Noa/LightRocket via Getty Images

The federal government paid more money to fill fewer prescriptions in Medicare Part D between 2011 and 2015, according to a new federal report.

The bottom line: "Increasing prices for these drugs will affect beneficiaries and the government for years to come," Ed Burley, a deputy regional inspector general involved with the report, said on a podcast.

The big picture: Federal payments for brand-name drugs in Part D increased 62% between 2011 and 2015 — and that's after accounting for rebates that offer discounts on drugs' sticker prices. The number of actual prescriptions fell 17% over the same period.

The Office of Inspector General's study included some other noteworthy findings:

  • The unit cost for Medicare drugs rose six times faster than the general rate of inflation.
  • One of the most significant unit cost increases came from Cuprimine, a rheumatoid arthritis drug made by Valeant that soared by 2,143%, from $6 in 2011 to $135 in 2015. Medicare paid Valeant $48 million for Cuprimine over that time span.

Real-world impact: The percentage of seniors and disabled people who have Medicare Part D coverage and "who had at least $2,000 per year in out-of-pocket costs for brand-name drugs nearly doubled" from 2011-2015, per the report.

  • Most of these people are taking "maintenance" medications that treat chronic conditions, so these costs aren't going away and aren't attributed to new, expensive drugs.
  • The Trump administration also wants to move drugs from Medicare Part B to Part D.

Be smart: Pharmacy benefit managers and other middlemen in the supply chain have been getting their fill, but pharmaceutical firms are still some of the most profitable companies on the planet.

Go deeper

Trump set to appear at Pennsylvania GOP hearing on voter fraud claims

President Trumpat the White House on Tuesday. Photo: Chip Somodevilla/Getty Images

President Trump is due to join his personal lawyer Rudy Giuliani in Gettysburg, Pennsylvania, Wednesday at a Republican-led state Senate Majority Policy Committee hearing to discuss alleged election irregularities.

Why it matters: This would be his first trip outside of the DMV since Election Day and comes shortly after GSA ascertained the results, formally signing off on a transition to President-elect Biden.

Scoop: Trump tells confidants he plans to pardon Michael Flynn

Photo: Alex Wroblewski/Getty Images

President Trump has told confidants he plans to pardon his former national security adviser Michael Flynn, who pleaded guilty in December 2017 to lying to the FBI about his Russian contacts, two sources with direct knowledge of the discussions tell Axios.

Behind the scenes: Sources with direct knowledge of the discussions said Flynn will be part of a series of pardons that Trump issues between now and when he leaves office.

Erica Pandey, author of @Work
10 hours ago - World

Remote work shakes up geopolitics

Illustration: Eniola Odetunde/Axios

The global adoption of remote work may leave the rising powers in the East behind.

The big picture: Despite India's and China's economic might, these countries have far fewer remote jobs than the U.S. or Europe. That's affecting the emerging economies' resilience amid the pandemic.