Medicare Part D Payment Model Gives Health Plans More Incentives To Negotiate Lower Drug Prices

In a push to get health plans to choose drugs with lower list prices, the US Centers for Medicare & Medicaid Services is introducing a new Part D payment model that will reward participating plans for staying below a target level of spending in the catastrophic phase of the benefit.

The agency announced the new voluntary Part D Modernization model, as well as updates to its existing Medicare Advantage Value-Based Insurance Design (VBID) model, on Jan. 18