A new analysis by the Moran Company found that the Average Sales Price (ASP) system created through the Medicare Modernization Act of 2003 has delivered significant savings for the government and seniors.
The report suggests the ASP system kept roughly $132 billion in the government’s and seniors’ coffers between 2005 and 2017 in Part B spending, with 2005 alone posting some $4.4 billion in savings.
PhRMA in a blog post says the new analysis is “just the latest piece of evidence showing the ASP system is working to control costs.”
“It is imperative that we recognize the historic success of the ASP system and other aspects of Medicare Part B that are working well to control costs before making drastic changes to the program,” the blog states.
To read the full blog post on PhRMA’s website, click here.