Medicare Walks Back Proposed Payment Policy For 505(b)(2) Physician Administered Drugs

The Centers for Medicare and Medicaid Services will not move ahead with its proposal to “codify” an existing policy of reimbursing some Medicare Part B drugs approved by the US Food and Drug Administration under the 505(b)(2) pathway as multiple source products, which generally get lower payments than single source drugs.

“We appreciate [stakeholders’] concerns about implementing the proposals and requests for additional time for further evaluation and engagement,” CMS announced in the Medicare Physician Fee Schedule update for 2021