- Bob Herman
- Oct 3
Medicare officially kills controversial drug payment model
Medicare has withdrawn a proposal that would have cut drug payments. Photo: J. Scott Applewhite / AP
The Centers for Medicare and Medicaid Services has officially withdrawn the Obama administration's proposed rule that would have reduced Medicare payments for drugs administered in outpatient offices. The so-called Part B demonstration has effectively been dead for a while after the health care industry rallied against it, which led to political scorn from both sides of the aisle.
Between the lines: Pharmaceutical companies and doctors hated the idea because it directly threatened to lower how much money they make from lucrative drugs. Don't expect any similar price-cutting proposals to resurface under the Trump administration.