CMS Empowers Patients With More Choices and Takes Action to Lower Drug Prices
Today, the
For the first time, CMS will provide Medicare Advantage plans -- private health insurance plans that provide Medicare benefits to 20 million Medicare beneficiaries (a third of all beneficiaries in Medicare) -- the option of negotiating for Part B drugs in a way that lowers costs and improves the quality of care. Medicare Advantage plans that also offer a Part D benefit will be able to cross-manage across Part B and Part D, so that patients receive the best medicine whether it is physician-administered or self-administered. CMS is also putting American Patients First by making sure that Medicare Advantage plans negotiate in a way that ensures patient choice and provides patient protections with guardrails, including that step therapy can only be applied to new prescriptions for patients who are not actively receiving a given medication.
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"Under the President's leadership, for the first time ever, CMS is bringing negotiations to physician-administered drugs and delivering on our promise to lower drug prices for patients," said CMS Administrator
In a memo sent to Medicare Advantage plans, CMS is giving them the option - starting
CMS is allowing Medicare Advantage plans to take advantage of step therapy for Part B drugs, which constitute around
As Administrator Verma said in a speech to the
If a plan decides to offer this approach to enrollees in 2019, it must be explicitly communicated to beneficiaries through the Annual Notice of Change and Evidence of Coverage documents. Patients that do not wish to participate in a plan that takes advantage of this approach to lower costs will have the option to select a different plan. This new approach must be coupled with care coordination services to support a move towards paying for value. Care coordination must include discussing medication options with beneficiaries; providing beneficiaries with education and information about their medications; and implementing adherence strategies for beneficiaries on their medication regimen.
Medicare beneficiaries, including those currently enrolled in a Medicare Advantage plan, will have the option to select a plan using these new tools to negotiate lower drug prices during the 2019 annual Medicare open enrollment from
Bringing negotiation to Medicare Part B is a key pillar of the Administration's Blueprint to reduce prescription drug costs, and the agency will continue to take actions that advance this goal. In another step to promote this objective, CMS recently released a Request for Information as part of the CY 2019 Medicare Hospital Outpatient Payment System proposed rule on how to develop a model test that leverages the authority provided to the agency under the Competitive Acquisition Program (CAP) to strengthen negotiations for Part B drugs.
To view the memo that was sent to Medicare Advantage plans, please visit: https://www.cms.gov/Medicare/Health-Plans/HealthPlansGenInfo/Downloads/MA_Step_Therapy_HPMS_Memo_8_7_2018.pdf.
To view a fact sheet on allowing Medicare Advantage plans the option of applying step therapy for physician-administered and other Part B drugs, please visit: https://www.cms.gov/Newsroom/MediaReleaseDatabase/Fact-sheets/2018-Fact-sheets-items/2018-08-07.html.


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