CMS introduces new models to lower drug prices in Part D, Medicare Advantage

CMS’ Center for Medicare and Medicaid Innovation (CMMI) has announced a new model that aims to lower prescription drug prices in Medicare Part D and introduced several updates to Medicare Advantage (MA) plans.

The new Part D model could save roughly $2 billion, while the MA plan update could save “hundreds of millions,” CMS Administrator Seema Verma said on a call with reporters Jan. 18. Both figures are preliminary estimates, with more solid estimates to come, she noted.

MA and Part D plans are both private plans that provide Medicare beneficiaries with medical and prescription drug coverage, and both new models for the plans are voluntary, allowing...