November 30, 2018
AAF Explains New Regulations Seeking to Lower Drug Prices
On Monday, the Centers for Medicare and Medicaid Services (CMS) released several new proposed regulations seeking to put downward pressure on drug prices. AAF’s Deputy Director of Health Care Policy Tara O’Neill Hayes breaks down the latest regulations and explains the possible changes that may result.
CMS is continuing its effort to reduce the cost of medicines. In the rules put forward this week, CMS is primarily seeking to achieve this goal by providing greater flexibility in the rules governing the Medicare Advantage and Part D programs, flexibility that would give private insurers new leverage to negotiate greater discounts. Given the natural trade-off that exists with any discussion of prescription access versus cost, some of this flexibility may make certain prescriptions more difficult to access for Medicare patients. In light of the continued public pressure to lower American drug costs, policymakers may ultimately decide that these proposals represent a worthwhile trade-off.
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