Medicare To Test New Payment Model For Part B Prescription Drugs

The Medicare program is planning to test a new payment model for Part B prescription drugs in late 2016 that would reduce the physician payment from the current average sales price plus a 6% add-on to a flat-fee payment of $16.80 per drug per day plus a 2.5% add-on. The goal of changing prescribing incentives is determine if the new model leads to improved quality and value. Drugs covered under Medicare Part B are administered in a physician’s office or hospital outpatient department, and include drugs such as cancer medications, injectables like antibiotics, or . . .