Business NewsGovernmentNewsPhysicians

CMS PROPOSAL TO REQUIRE MANUFACTURERS TO DISCLOSE DRUG PRICES IN TV ADS COMMENTS DUE BY DEC. 17

CMS SEEKS COMMENT ON HISTORIC PROPOSAL TO INCREASE TRANSPARENCY IN DRUG PRICING.

 

The Centers for Medicare & Medicaid Services proposed Oct. 15 to require that prescription drug manufacturers post the Wholesale Acquisition Cost (WAC) for drugs covered in Medicare or Medicaid in direct-to-consumer television advertisements.

“This historic proposal is an important way to create new incentives for drug companies to start lowering their list prices, rather than raising them,” said

.

“President Trump’s drug-pricing blueprint called for HHS to consider how to accomplish this goal, and now we are following through on this measure to better inform patients, help them lower their drug costs, and reduce unreasonable spending in Medicare and Medicaid.”

The proposed rule, part of the agency’s ongoing efforts to empower patients and lower prescription drug prices, would work to inject greater transparency into the prices prescription drug manufacturers set and would give beneficiaries important information they need to make informed decisions based on cost, while concurrently providing a moderating force to counteract price increases.

CMS Administrator Seema Verma said President Trump and Secretary Azar are working tirelessly to bring down prescription drug prices “Today, CMS is continuing to execute on the President’s blueprint.”

“We are committed to price transparency across-the-board, and prescription drugs are no different,” she said. “Patients often pay their cost-sharing or deductible off of a drug’s list price.  Today’s proposed rule would ensure that those list prices are included in television advertisements, so patients have the information they need to make informed decisions.”

Under the proposed rule, the price required to be posted would be for a typical course of treatment for an acute medication such as an antibiotic, or a 30-day supply of medication for a chronic condition that is taken every month, and the posting would take the form of a legible textual statement at the end of the ad.

The HHS Secretary would maintain a public list of drugs that were advertised in violation of this rule.  CMS would provide an exception to the requirement to post prices for prescription drugs with list prices of less than $35 per month.

Additionally, to advance the Administration’s goal to ensure drug price transparency and also account for the different ways Americans receive advertising and promotional messages, CMS is seeking comment on whether the regulation should apply to advertisements in other media forms such as radio, magazines, newspapers, websites and social networking sites.

Earlier this year, CMS released a redesigned version of the Drug Spending Dashboards, which include year-over-year information on drug prices and, for the first time, highlight which manufactures have been increasing their prices. This move was an important step to bringing transparency and accountability to a process largely hidden from patients.

The agency has also promoted transparency in other areas of the healthcare system, such as by requiring hospitals to post their standard charges online in a machine-readable format.  In addition, CMS recently launched the eMedicare initiative to empower beneficiaries with cost and quality information.  This announcement included the launch of a mobile-optimized out-of-pocket cost calculator that will provide beneficiaries with information on both overall plan costs and prescription drug costs.  VTN

For a policy brief on the Drug Pricing Transparency CMS-4187 proposed rule, please see: https://www.hhs.gov/about/news/2018/10/15/what-you-need-to-know-about-putting-drug-prices-in-tv-ads.html

The proposed rule can be downloaded from the Federal Register at: https://www.federalregister.gov/public-inspection/.

CMS looks forward to feedback on the proposal and will accept comments until Dec.17. Comments may be submitted electronically through the e-Regulation website at https://www.cms.gov/Regulations-and-Guidance/Regulations-and-Policies/eRulemaking/index.html?redirect=/eRulemaking.

 

Previous post

TELEMEDICINE GIANT HEALTHRIGHT, 4 COMPOUNDING PHARMACIES CHARGED WITH $1 BILLION FRAUD

Next post

DRUGMAKERS FUNNEL MILLIONS TO LAWMAKERS; A FEW DOZEN GET $100,000-PLUS

Larry Storer

Larry Storer

Larry Storer has been editor of Vein Therapy News for 10 years. He has edited computer, shelter and medical publications at Publications & Communications LP for 30 years. He was also a corporate vice president and editorial director before retiring. Larry graduated from Baylor University with a BA in journalism and an MA in communications; and from Lamar University with a MED in school administration. He taught beginning and advanced reporting, beginning and advanced editing and editorial writing at Baylor University. Larry was a reporter, and city and news editor of the Beaumont Journal, and opinion editor at the Beaumont Enterprise and Beaumont Enterprise-Journal. He was also the founding managing editor of the Yuba City (California) Daily Independent-Herald.