Proposed Changes to Medicare Part B Threaten Care & Innovation

The Trump Administration is pushing several ill-advised changes to Medicare Part B that threaten patient care, medical research and innovation. While efforts to reduce the cost of prescription drugs are needed, the Administration's approach is all wrong.

One particularly troublesome proposal would apply the International Pricing Index (IPI) model to how Medicare pays for vital medications that treat chronic, debilitating conditions under Part B. Under the IPI model, drug prices would be based on what 14 other foreign countries pay. While these countries may have lower drug costs, the model comes with consequences far worse than price.

By putting a middleman between patients and doctors and imposing foreign-price controls on drugs in the US, the IPI model would restrict short-term access to vital treatments, shrink medical innovation incentives and, most importantly, pose severe risks to vulnerable Medicare beneficiaries under Part B who are diagnosed with conditions such as cancer, multiple sclerosis, rheumatoid arthritis and more.

The Trump Administration needs go back to the drawing board and focus on patient-centered reforms that lower costs without threatening patients' access to care or the medical innovation that can improve their quality of life.