CAHC Raises Concerns Over Administration's Newly Proposed Medicare Medicare Part B Payment Model

WASHINGTON, DC (October 25, 2018): The Council for Affordable Health Coverage (CAHC)  – a coalition of employers, insurers, life science companies, PBMs, brokers, agents, patient groups, and physician organizations – today responded to the Trump administration's proposed "International Pricing Index" (IPI) payment model for physician-administered drugs. 

CAHC President Joel White released the following statement:

"The Trump administration has done important work on drug affordability and access, but the proposed reforms announced today pose serious concern to CAHC members and ultimately could amount to government-imposed price controls for Part B medications. The proposed change flies in the face of the market-based drug cost solutions this administration has otherwise supported, it threatens to undermine patient access to treatment, and, as the proposal is specific to Medicare Part B,  it will not move the needle when it comes to patient costs at the pharmacy counter," said CAHC President Joel White. "CAHC members know that competition has done more to lower drug costs than any government program. We oppose price controls whether they are imposed by Congress or imported by the President. CAHC encourages the administration to instead build upon its efforts to spur competition and accelerate the shift toward value-based care, which are already making a positive difference for consumers nationwide.”

CAHC's Work on Prescription Drug Affordability:

CAHC first brought together a diverse cross-section of industry stakeholders to offer specific, market-based prescription drug affordability solutions with its 2017 whitepaper entitled, "Prescriptions for Competition, Value, and Innovation: Positive Reforms to Increase Access and Affordability for Prescription Drugs."  

More recently, the coalition submitted a response to the a request for information on the administration's "American Patients First" blueprint, which outlined recommendations such as codifying FDA guidance allowing pre-approval communication between manufacturers and health plans, creating clear exceptions to Medicaid "best price" for value-based arrangements, and establishing a safe harbor from Anti-Kickback regulations for value-based and coordinated care models.

A CAHC cost estimate found that the proposals could offer up to $47 billion in annual savings to the healthcare system. CAHC President Joel White discussed these proposals in a recent op-ed for Specialty Pharmacy Times.

Last week, CAHC hosted a Congressional briefing entitled "VBAs 101" where it announced that it is working with lawmakers toward the Senate introduction of VBA legislation in the very near term.