Medicare should continue to pay average sales price plus 6% for most separately payable Part B drugs, but cap ASP inflation, AHA told the Medicare Payment Advisory Commission in comments submitted today. 

At its January meeting, MedPAC discussed modifying the ASP add-on payment to the lesser of 6%, 3% plus $24, or $220 per drug per day; and using reference pricing to address high prices and price growth for new and existing drugs with therapeutic alternatives. AHA expressed concern that both proposals would shift responsibility for rapid growth in drug prices from drug makers to hospitals and patients.

Among other comments, AHA recommended Medicare permanently extend certain telehealth flexibilities used to expand access to care during the COVID-19 pandemic and reconsider certain other policy options that run contrary to what these permanent extensions would accomplish.
 

Related News Articles

Headline
The Medicare Payment Advisory Commission Dec. 4 and 5 discussed draft payment update recommendations for 2027, which the commission will vote on in January.…
Headline
The Trump administration announced a trade agreement with the U.K. Dec. 1 on pharmaceuticals that exempts U.K. drug products from Section 232 tariffs. In…
Headline
The House Dec. 1 passed the Hospital Inpatient Services Modernization Act (H.R. 4313), legislation extending certain Medicare waivers authorizing the hospital-…
Headline
The Centers for Medicare & Medicaid Services announced Dec. 1 that it intends to expand the Inpatient Rehabilitation Facility Review Choice Demonstration…
Headline
The Centers for Medicare & Medicaid Services Nov. 25 announced lower prices for 15 Medicare Part D drugs selected for the second cycle of negotiations…
Headline
The Centers for Medicare & Medicaid Services Nov. 25 issued a proposed rule for policies governing the Medicare Advantage and Part D programs for 2027. CMS…