New CMS Director Could Indicate Shift in Medicare Prescription Drug Pricing Policy

Arielle Woronoff is joining the new administration as director of the CMS Office of Legislation. She previously held worked in health policy roles, including a position on the Senate Finance Committee where she contributed to the Grassley-Wyden bill. This move could lead to major changes if Medicare acts to base its prices on value assessments, such as those reported by ICER.

Bernstein’s Ronny Gal notes, “Value-based pricing would be a watershed moment. Price capitation is not… The added discounts, rebates and limitations on price increases are not going to ultimately stop pharma’s ability to charge high prices in the US, because all of these policies limited manufacturers ability to change prices, but do not limit drug prices at launch… To make a law a ‘solution’ it needs to include limitations on new drug prices.” Read more here.

(Source: Cathy Kelly, Pink Sheet, 2/16/21)