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Spending Challenges for Prescription Drugs: Part B and Part D - PowerPoint PPT Presentation

Spending Challenges for Prescription Drugs: Part B and Part D Reform Stacie B. Dusetzina, PhD Associate Professor of Health Policy Ingram Associate Professor of Cancer Research Prescription Drugs and Spending Trends Recent Proposals for


  1. Spending Challenges for Prescription Drugs: Part B and Part D Reform Stacie B. Dusetzina, PhD Associate Professor of Health Policy Ingram Associate Professor of Cancer Research

  2. Prescription Drugs and Spending Trends

  3. Recent Proposals for Part B • International Pricing Index • Step-Therapy for Medicare Advantage • Relocate Drugs from Part B to Part D 3

  4. Recent Proposals for Part D • Reclassify rebates as kickbacks / pass-through rebates at the point-of- sale • Remove protected class status for drugs (dropped from final rule) • Adding an out-of-pocket spending cap on Part D* 4

  5. 5

  6. If Rebates are Large, Patients Could Benefit $8,000 $7,000 Out-of-Pocket Spending $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 Harvoni Zepatier Full Cost: $94,916 Full Cost: $54,841 Dusetzina SB , Conti RM, Yu NL, Bach PB. Association of Prescription Drug Price Rebates in Medicare Part D With Patient Out-of-Pocket and Federal Spending. JAMA Intern Med. 2017;177(8):1185–1188.

  7. What Might Work? • Reference Pricing • Price Setting that Aligns with Value • Shift Incentives in Part D for Negotiating • Regulation? 7

  8. Questions? @DusetzinaS s.dusetzina@Vanderbilt.edu

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