CMS to Try Out Reduced Payments for Drugs with Accelerated Approval

The US Centers for Medicare and Medicaid Services announced that it will test out a pilot program meant to push pharma companies to finish confirmatory studies on drugs that received accelerated approval. Patients and payer currently pay full price for these drugs, so CMS will try paying reduced price as a motivator to gather sufficient clinical evidence for a full approval.

According to Zachary Brennan, “The test program comes as HHS’ inspector general said in a September report that Medicare and Medicaid spent more than $18 billion from 2018 to 2021 for 18 drugs (or 35 drug applications granted accelerated approval) with incomplete confirmatory trials that are past their original planned completion dates as of last May.”

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(Source: Endpoints News, February 15^th, 2023)