Here are six points:
1. In its 320-page biannual report to Congress, MedPAC focused mainly on drug payments and physician reimbursement under Medicare Access and CHIP Reauthorization Act.
2. The report advised Congress eliminate some incentives for physicians to select more expensive drugs for beneficiaries.
3. MedPAC noted Medicare spends $21 billion each year on Part B drugs. Currently, Part B drug reimbursement includes an add-on fee of 6 percent according to the drug’s average sales price.
Instead of this reimbursement model, MedPAC proposes replacing the 6 percent add-on fee with a flat fee and a limited add-on percentage. The commission hopes physicians would then be less inclined to select costlier drugs, and consequently decrease Part B spending by 1.3 percent.
4. MedPAC also suggested Congress reduce the growth rate of the average sales price for Part B drugs, among other recommendations.
5. The report touched on Part D changes, noting significant growth of about 20 percent annually.
6. In its report, MedPAC also advised on eligible alternative payment models under MACRA. Each APM should have to take on financial risk for Medicare Part A and Medicare Part B. Additionally, the report noted APMs should be able to pass on savings to beneficiaries and involve enough beneficiaries to “detect changes in spending and quality.”
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