Medicare Weighing Higher Add-On Payments For New Drugs, Including CAR-T

Change would increase maximum new technology add-on payments from 50% to 65% of costs.

3D illustration of T cells attacking a cancer cell (CAR-T cell therapy) - Illustration

The US Centers for Medicare and Medicaid Services is considering more generous Medicare new technology add-on payments for innovative treatments administered in hospitals, including chimeric antigen receptor T-cell (CAR-T) therapies, in response to complaints that the current payments are insufficient and my stifle innovation.

New technology add-on payments (NTAPs) are provided for up to three years to breakthrough technologies as a supplement to standard hospital reimbursement using bundled case-based payments known as diagnosis related groups (DRGs)

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