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Newsletter Article


HHS Has Plans to Pay for Drugs in Medicare Part B Based on International Prices

The U.S. Department of Health and Human Services (HHS) has announced it will test a new payment model that aims to substantially lower the cost of prescription drugs and biologics covered under the Medicare Part B program. The new system would, for the first time, base payment for these drugs on the typically lower drug prices paid in other countries. On To the Point, the Commonwealth Fund's Shawn Bishop, Christina Ramsay, and Lovisa Gustafsson argue that HHS could instead pursue a broader cost-reduction strategy that adapts core elements of the international approach to drug pricing.

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