Health Payer Intelligence October 29, 2018
CMS estimates nearly $17.2 billion in Medicare Part B savings over five years by implementing a new international-based drug pricing model.
A new drug pricing model with an international component could save Medicare Part B approximately $17.2 billion over five years, CMS says.
The International Pricing Index (IPI) will test if using drug price benchmarks other developed nations can encourage vendors to negotiate lower drug prices with pharmaceutical companies. The framework also includes policies that hold vendors responsible for up-front drug costs and encourage vendors to negotiate prices with providers.
CMS estimates that Medicare drug spending increased by $17.6 billion from 2011 to 2016, a growth rate of 9.8 percent each year. The agency found that Medicare spent...
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