Press Release

PhRMA Statement on Medicare Part B Drugs and Changes

PhRMA March 8, 2016

WASHINGTON, D.C. (March 8, 2016) – Today the Pharmaceutical Research and Manufacturers of America (PhRMA) spokesperson Allyson Funk provided the following statement in reaction to a newly released ASPE Issue Brief on Medicare Part B drugs and proposed Part B changes:

The current Medicare Part B drug payment methodology is an effective, market-based pricing mechanism that works to control costs. Part B medicines represent a small and stable share of overall Part B spending and price growth for Part B drugs is below overall medical inflation. In fact, in a December ASP update, CMS acknowledged competitive market forces are at work. In addition, HHS recently announced that it has met its goal of tying 30 percent of Medicare payments to alternative payment models (APMs) like accountable care organizations; these APMs are increasingly providing incentives for value in Medicare Part B.

“Proposing sweeping changes to Medicare Part B drug reimbursement without thoughtful consideration and stakeholder input is not the right approach and puts Medicare patients who rely on these medicines at risk.”

About PhRMA

The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading innovative biopharmaceutical research companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier, and more productive lives. Since 2000, PhRMA member companies have invested more than $600 billion in the search for new treatments and cures, including an estimated $51.2 billion in 2014 alone.

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