AHA yesterday commented on recent Medicare Payment Advisory Commission discussions on possible approaches to reducing spending on Part B drugs and biologicals, improving alternative payment models, and revising the hospital wage index. The letter raises concerns with approaches that would shift responsibility for surging drug prices from drug manufacturers to hospitals and patients. Instead, it supports a cap on average sales price inflation that requires drug manufacturers to pay rebates to the federal government when ASP growth exceeds an inflation benchmark, and encourages the commission to further evaluate a payment model that implements mandatory additional rebates to purchasers when the manufacturer’s price increase for a Part B drug exceeds inflation. The letter also raises concerns with possible approaches that would use non-hospital data to calculate the wage index. In addition, AHA voiced support for exploring how a multi-track APM could “provide a glide path to risk for all potential participants” to ensure “a balance between incentivizing participation in models and securing cost savings and high-quality care for patients.” 

Related News Articles

Headline
The AHA July 11 released its quarterly Health Care Plan Accountability Update, a roundup of news, letters, statements and other resources covering private…
Headline
The Centers for Medicare & Medicaid Services July 2 announced that Maryland, Vermont and Connecticut will be the first participants in the States Advancing…
Headline
An infographic released by the University of Minnesota Rural Health Research Center highlights the decline of maternity care access in rural counties across…
Headline
The AHA submitted a statement July 11 for a Senate Special Committee on Aging hearing on health care transparency and lowering health care costs. The AHA…
Headline
The Centers for Medicare & Medicaid Services July 10 released its calendar year 2025 proposed rule for the physician fee schedule. The rule proposes to cut…
Headline
Improving access to rural health care is a top priority for AHA, and its 2024 Rural Advocacy Agenda lays the groundwork to improve the system as a whole. In…