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Advising the Congress on Medicare issues
MedPAC > Recommendations > Addressing high prices of drugs covered under Medicare Part B (1)

Addressing high prices of drugs covered under Medicare Part B (1)

June 15, 2023

The Congress should require the Secretary to cap the Medicare payment rate for Part B drugs and biologics that are approved under the accelerated approval program (with limited circumstances for the Secretary to waive the payment cap) if:

  • postmarketing confirmatory trials for the product are not completed within the deadline established by the manufacturer and the Food and Drug Administration,
  • the product’s clinical benefit is not confirmed in postmarketing confirmatory trials, or
  • the product is covered under a “coverage with evidence development” policy.

In addition, the Congress should give the Secretary the authority to cap the Medicare payment rate of Part B drugs and biologics that are approved under the accelerated approval program if their price is excessive relative to the upper-bound estimates of value.

Appeared in: June 2023 - Chapter 1

Topics: Drugs, Devices, and Tests.