A recent report by PWC’s Health Research Institute suggests that an international pricing index for Medicare Part B drugs, as proposed by the Trump administration, would put a significant dent in the revenue of pharmaceutical companies, Becker’s Hospital Review reports.
PwC’s report says the new pricing model could, however, limit price growth under Part B, and would open competition for 29 of the program’s top 50 drugs.
“CMS officials estimate using target prices based on foreign competition could reap substantial savings for Medicare Part B — and about 30 percent on a per-drug basis,” PwC’s report states. “Between 2020 and 2025, they expect to generate net savings of $17.9 billion for Part B, as well as $1.8 billion in reduced Medicaid spending due to impacts on the dual-eligible population.”
To read more on Becker’s Hospital Review, click here.