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Medicare Part B Drug Payment Model Canceled

The Centers for Medicare & Medicaid Services (CMS) has withdrawn its proposed Medicare Part B drug payment  model, a mandatory five-year initiative that would have reduced Medicare’s payment to providers for physician-administered drugs and also tested various value-based purchasing arrangements aimed at lowering drug spending.

A CMS spokesperson said the project was pulled after the agency reviewed public comments there were more than 1,300 comments submitted, mostly negative. The proposal had been controversial, with lawmakers on both sides of the aisle voicing strong opposition. America’s Essential Hospitals submitted comments to CMS in May urging the agency to withdraw the proposal because of the association’s concerns with its effect on clinician judgment and clinically complex patients.

Contact Director of Policy Erin O’Malley at or 202.585.0127 with questions.


About the Author

Michelle Rosenfeld is manager of communications at America's Essential Hospitals.

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