OIG: CMS Needs to Help Drugmakers in Calculating Best Medicare Part B Prices
The Office of the Inspector General (OIG) has recommended that the Centers for Medicare and Medicaid Services (CMS) help drug makers in calculating the best Medicare Part B prices. The OIG believes that CMS should help drugmakers to determine the best prices they can receive when buying medicines for Medicare Part B.
Reasons for the OIG Recommendation
The OIG outlined the following reasons for the recommendation:
- The current method for calculating Medicare Part B prices does not reflect the true market value of drugs.
- CMS does not offer guidance or resources to drugmakers on how to calculate the best prices for their products.
- A lack of visibility into the Medicare Part B prices currently being charged.
- The current system does not provide adequate financial incentives for drugmakers to provide their products at competitive prices.
Benefits of OIG Recommendation
The OIG recommendations would benefit both drugmakers and patients:
- Drugmakers: Drugmakers would be better able to accurately price their drugs according to the market value and have access to transparent pricing information.
- Patients: By providing drugmakers with incentives to offer competitive prices, patients would have access to lower costs for their medications.
The OIG believes that CMS should provide guidance and resources to drugmakers on how to accurately calculate the best prices for the drugs they offer under Medicare Part B. In doing so, both drugmakers and patients would receive numerous benefits from increased transparency and lower costs.