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CMS Withdraws Proposed Part B Drug Payment Rule

October 6, 2017

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PRESS CONTACTS
Ivy Baer, Senior Director and Regulatory Counsel

The Centers for Medicare and Medicaid Services (CMS) Oct. 4 withdrew a rule proposed by the previous administration regarding the Medicare Program Part B Drug Payment Model, which was designed to test whether alternative drug payment designs would lead to a reduction in Medicare expenditures while preserving or enhancing the quality of care provided to Medicare beneficiaries.

In a May 9, 2016 comment letter on the proposed rule, the AAMC said that the proposal “will harm hospitals, physicians, and the patients they serve.” Instead, the association suggested a narrower, voluntary demonstration that would identify classes of drugs for which there are alternatives that are equally clinically effective and available at lower prices and would evaluate whether the demonstration had positive effects on prescribing behavior [see Washington Highlights, May 13, 2016].

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