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 Centers for Medicare & Medicaid Services Dec. 19 issued two proposed rules for implementing alternative drug pricing models. The first proposed…
Headline
The White House announced Dec. 19 that it reached most-favored-nation deals with nine pharmaceutical companies, aligning their drug prices with the lowest paid…
Headline
The Centers for Medicare & Medicaid Services released a memo Dec. 16 announcing the agency’s intent to conduct a voluntary pilot in 2026, called the…
Headline
An AHA blog examines new data released by the Health Resources and Services Administration on the growth of the 340B Drug Pricing Program.  “When…
Headline
The Centers for Medicare & Medicaid Services Dec. 15 published the Measures Under Consideration List for 2025. These are measures that CMS is considering…
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.…