22 September 2023 - By using data on therapeutic alternatives as the basis for an initial offer price, CMS is establishing a novel framework to systematically compare drugs based on their value.

Although the law does not permit the negotiation of prices for drugs with generic competition, under this framework CMS may be able to consider the price of generic therapeutic alternatives and use these generic prices to drive down the initial offer price of brand name drugs selected for negotiation.

Read The Commonwealth Fund article