Outside Publication

Proposed Medicare Part B Payment Methodologies Will Impact Drug Manufacturers, Physician Practices and Hospital Outpatient Departments

BNA's Pharmaceutical Law & Industry Report

April 22, 2016

On March 11, 2016, the Centers for Medicare & Medicaid Services announced a proposed two-phase demonstration project to test new Medicare Part B payment models.

The proposed changes to the current system are intended to eliminate the perceived incentive inherent in the average sales price (ASP) ‘‘add-on’’ model (ASP plus 6%) for providers to purchase higher priced drugs and biologics, and to create incentives to purchase lower priced drugs and biologics (collectively drugs). Comments on the Proposed Rule are due May 9, 2016. 

Read the full article >>