Healthcare News: CMS scuttles controversial proposed Part B drug payment model

December 20th, 2016

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Note:  The following article synopsis was NOT provided by HCPro. It was created by Find-A-Code/innoviHealth.

Article Overview

This article covers a CMS Medicare policy update about a proposed Part B drug payment model that was ultimately not advanced. It explains the policy context, the broad structure of the proposed testing phases, the stakeholder concerns that influenced the discussion, and the agency’s ongoing interest in drug-cost management. The piece is relevant to reimbursement, practice management, hospital outpatient billing, and medical coding professionals who track federal payment policy changes.

Why This Topic Matters

Changes to Medicare drug payment policy can affect reimbursement, physician and hospital outpatient operations, and planning for specialties that depend on costly drugs. Readers who monitor CMS and Medicare payment developments will want to understand the policy direction and the broader context around prescription drug cost control.

Article Sections

  1. CMS decision on the proposed Part B drug payment model

    Summarizes the agency’s announcement that the proposed model would not proceed and places it in the context of CMS payment policy activity.

  2. Background and rationale for the proposal

    Reviews the policy motivation behind the model and the stakeholder concerns that were raised during the proposal period.

  3. Proposed testing phases

    Outlines the general structure of the two testing phases and the types of payment and purchasing concepts that were under consideration.

  4. Medicare Part B spending context

    Provides the article’s reported spending trend context for separately paid drugs in hospital outpatient settings.

What You Will Learn

  • The policy context behind a CMS Medicare Part B drug payment proposal
  • How the proposed model was structured at a high level
  • What kinds of stakeholder concerns were associated with the proposal
  • Why Medicare drug payment policy changes matter for hospitals and physician practices

Who Should Read This

  • Medical coders
  • Billing and reimbursement staff
  • Hospital outpatient departments
  • Physician practices
  • Healthcare compliance professionals
  • Revenue cycle teams
  • Healthcare policy readers

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