Medicare Cancer Drug Costs Not Linked to Clinical Value

Medscape January 17, 2025
Edited by Gargi Mukherjee

TOPLINE:

A new analysis suggests that Medicare spending on anticancer drugs is not based on a drug’s clinical value, highlighting “a misalignment between drug pricing and the clinical benefits they offer.”

METHODOLOGY:

• Medicare typically accepts the drug prices set by the manufacturer, instead of negotiating drug prices like many other countries do. As a result, manufacturers have had little incentive to align a drug’s price with its value or ensure affordability.
• In the current study, researchers evaluated the factors associated with Medicare spending on anticancer drugs approved in the United States from 2012 through 2021.
• Cost data came from Medicare claims available on the Centers for Medicare and Medicaid Services website from the “Medicare Spending by Drug” section for...

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