CBO: Blocking proposed Part B drug demo would cost $395 million

Proposed legislation (H.R. 5122) to prevent the Secretary of Health and Human Services from enforcing a proposed rule implementing a Medicare Part B drug payment model would cost $395 million over a 10-year period, the Congressional Budget Office estimated today. The Center for Medicare and Medicaid Innovation model would lower Part B payments for drugs provided in physician offices and hospital outpatient departments. CBO estimates that Medicare will spend about $18 billion on drugs covered under Part B in 2017 and about $240 billion over the 2017-2026 period. In comments submitted in May, AHA said the proposed model should not include hospitals, which have little control over which drugs physicians prescribe in hospital-based settings.