GOP slams Obama administration response on Medicare proposal

A group of House Republicans is denouncing the Obama administration for the lack of substance in its response to their objections to a new Medicare drug pricing initiative. 

{mosads}“CMS’s brief and uninformative response is dismissive of the risks posed to our nation’s sickest patients, including those with cancer, rheumatoid arthritis, rare diseases, and neurological disorders who could be adversely impacted by the proposal,” Rep. Tom Price (R-Ga.) said in a statement, referring to the federal Centers for Medicare and Medicaid Services. 

Price, along with Reps. John Shimkus (R-Ill.), Charles Boustany Jr. (R-La.) and 239 other lawmakers, wrote to the CMS last month raising objections to the controversial new drug pricing proposal. 

The initiative, part of the administration’s push to fight high drug prices, changes the way Medicare Part B pays for drugs. 

Currently, Medicare Part B pays doctors the average price of a drug, plus 6 percent. The administration warns that system gives doctors an incentive to prescribe higher cost drugs, so they can get paid more. The pilot program would reduce the 6 percent add-on to 2.5 percent, plus a flat fee of about $16. 

In the letter, the lawmakers called for the proposal to be scrapped, warning that it will end up hurting patients’ access to drugs if the cost for doctors to acquire medicines becomes higher than what Medicare reimburses. 

While only four Democrats joined this letter, many other congressional Democrats have expressed serious concerns, while stopping short of calling for the proposal to be completely eliminated. 

Price on Friday released the letter he received in reply from CMS Acting Administrator Andy Slavitt. 

The letter says that the CMS “appreciates you bringing these views to our attention,” but it does not respond to any of the specific objections that the lawmakers made, leading to the GOP complaints about the response. 

Dr. Patrick Conway, the No. 2 official at the CMS, has said previously that the administration is open to taking feedback from Congress and making changes to the proposal before it is finalized. For example, he said the geographic scope of the proposal could be narrowed and steps could be taken to ease the burden on rural doctors. 

Price said the response in the letter highlighted the need to pass legislation from Rep. Larry Bucshon (R-Ind.) that would end the proposal. 

“Given CMS’s response, now more than ever, Congress must work to advance H.R. 5122—legislation which would stop the proposed Medicare Part B Payment Model in its tracks,” Price said. “We must continue to fight to protect access to essential drugs for those whose lives are at stake. Thus, we will charge onward despite this less than adequate response from CMS.”