Medicare Add-On Payments For New Dialysis Drugs Limited To ‘Innovative’ Products

Centers for Medicare and Medicaid Services narrows the types of drugs eligible for add-on payments in the Medicare end-stage renal program as it tries to balance efforts to promote innovation with controlling costs.

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The US Centers for Medicare and Medicaid Services will only approve Medicare transitional add-on payments for new dialysis drugs it considers to be “innovative” starting in 2020, according to the recently released End Stage Renal Disease Prospective Payment System final rule.

The rule narrows CMS’ decision in the 2019 ESRD final rule to allow transitional drug add-on payment adjustments (TDAPAs) to all new dialysis drugs and biologics in an effort to promote greater innovation in treatment development

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