Morning Briefing
Summaries of health policy coverage from major news organizations
Medicare Officials Drop Plan To Cut Payments For Drugs Administered In Doctors' Offices
The New York Times: Plan To Reduce Medicare Drug Costs Is Withdrawn After Bipartisan Criticism
The Obama administration said on Thursday that it had scrapped one of its most significant efforts to rein in spending on prescription drugs: a plan for a nationwide experiment in which Medicare would have reduced payments for many drugs given to patients in doctors’ offices and hospital clinics. Federal health officials withdrew the proposal after it was criticized by pharmaceutical companies, doctors, patients and members of Congress from both parties. One of the sharpest critics was Representative Tom Price, Republican of Georgia, the man chosen by President-elect Donald J. Trump to be his secretary of health and human services. (Pear, 12/16)
The Hill: Obama Administration Scraps Controversial Drug Pricing Proposal
The administration had long planned to soldier on with the changes after issuing a proposal in March, saying it would make changes to address concerns when it issued the final version. But now the administration is throwing in the towel altogether. Donald Trump’s election has also taken the wind out of some efforts to fight high drug prices, leaving open the possibility of the new administration scrapping the initiative anyway. (Sullivan, 12/15)
Modern Healthcare: CMS Unveils Medicare-Medicaid ACO Model
The CMS plans to enlist states in a new experiment allowing Medicare accountable care organizations to also manage Medicaid costs for patients who are enrolled in both programs. The new model builds on the Medicare Shared Savings Program, in which Medicare ACOs that hit spending and quality targets are able to share in savings with the CMS. But those ACOs often don't consider Medicaid savings, even when beneficiaries are enrolled in both Medicare and Medicaid programs. Such “dual eligible” patients often are higher risk and have higher health costs. (Livingston, 12/15)
