CER Daily Newsfeed

Drugmakers Face Down Deadline on Medicare Price Negotiations

(9/29, Joseph Choi, The Hill) reports “...The deadline for drugmakers to sign agreements to negotiate with Medicare on pricing is fast approaching. Major drugmakers have until Sunday to sign an agreement to participate in the program or potentially face heavy taxes and lose their ability to sell through Medicare...A spokesperson for Bristol Myers Squibb, which has a hand in two products on the Medicare list, similarly said it had ‘no choice other than to sign the 'agreement. If we did not sign, we'd be required to pay impossibly high penalties unless we withdraw all of our medicines from Medicare and Medicaid. That is not a real choice,’ the company's spokesperson told The Hill in a statement.” Full

Merck to Join Medicare Drug-Price Negotiations 'Under Protest'

(9/28, Nacha Cattan, Bloomberg Law) reports “...‘While we disagree on both legal and policy grounds with the IRA's new program, withdrawing all of the company's products from Medicare and Medicaid would have devastating consequences for the millions of Americans who rely on our innovative medicines, and it is not tenable for any manufacturer to abandon nearly half of the U.S. prescription drug market’ The choice to abandon negotiations and weather the IRA's ‘massive fines and taxes is no choice at all,’ the company said.” Subscription Required

GOP Senator Probes Drug Discount Programs at Cleveland Clinic, Bon Secours

(9/28, John Wilkerson, STAT Plus) reports “...The top-ranking Republican on the Senate health committee is launching an investigation into two hospitals' use of a government program that provides big drug discounts in return for serving low-income communities...The Cleveland Clinic reported $136 million in revenue from the 340B program in 2021, Cassidy said, but according to news reports, the hospital hasn't discounted drugs for its patients since it began participating in 340B.” Subscription Required

340B Program Spending Continues To Swell In 2022, Topping $53Bn

(9/28, Cathy Kelly, Pink Sheet) reports “...‘The latest HRSA data showing the continued rapid growth in the 340B program further illustrates why comprehensive reform … is urgently needed,’ ASAP 340B said. ‘Ambiguity in the law, combined with a lack of accountability has allowed the program to balloon in size and scope without any assurances that underserved patients are benefiting.’ Given the ‘recent reports of misuse of the program by large, well-resourced hospitals, it's particularly troubling that the majority of the growth is concentrated on those entities, rather than community health centers and other true safety-net providers,’ the group continued. ‘We are encouraged that Congress is actively engaged in fixing the 340B program so that its mission can be restored and realized.’” Subscription Required

CMMI Increased Federal Spending by $5.4B During its First Decade, Report Finds

(9/29, Emily Olsen, Healthcare Dive) reports “...Between 2011 and 2020, the center launched nearly 50 models, though only six generated statistically significant savings and four were certified for expansion, according to the CBO report...‘For example, the agency’s analysis did not capture savings that might have accrued to Medicare through its permanent ACO program, known as the Medicare Shared Savings Program,’ according to the report. ‘Although that program is not part of CMMI’s activities, its design has been informed by the experience of ACOs that the center has operated.’” Full