Posted by Michael Wonder on 19 Jul 2016
Implications of proposed Medicare reforms to counteract high cancer drug prices
19 July 2016 - This Viewpoint describes 6 pilot programs from the Centers for Medicare & Medicaid Services aimed at lowering Part B drug costs by discussing their application to cancer treatments.
The high cost of cancer drugs is widely recognized as unsustainable and poses a threat to the long-term solvency of health care systems. The price of new cancer drugs often exceeds $100 000 per year or course of treatment, and price is not related to the novelty of a drug’s mechanism of action, the regulatory basis for approval, or the magnitude of the drug’s benefit. To address these concerns, the Centers for Medicare & Medicaid Services (CMS) recently announced 6 pilot programs to the Part B program aimed at lowering costs and improving value. The Part B program provides payments for drugs administered in a physician’s office or outpatient clinic. In 2015, Medicare Part B spending accounted for $20 billion.
