The Centers for Medicare and Medicaid Services (CMS) announced changes to how Medicare Part D health plans create drug formularies in a bid to facilitate indication-based formulary design.
CMS announced the change Wednesday in a memo to Part D plan sponsors, according to a Fierce Healthcare report.
The changes will reportedly take effect Jan. 1, 2020.
“By allowing Medicare’s prescription drug plans to cover the best drug for each patient condition, plans will have more negotiating power with drug companies, which will result in lower prices for Medicare beneficiaries,” Seema Verma, CMS administrator, said in a statement.
