Pharma trade group drafts counterproposal to CMS pricing of Medicare drugs

The Pharmaceutical Research and Manufacturers of America, the industry's main trade group, is considering a proposal that will cap drug price increases for Medicare, according to a report from BioCentury.

Under the proposal the group is drafting, PhRMA members would limit increases for the prices of drugs purchased by Medicare to a measure of consumer inflation.

The proposal is aimed at persuading CMS to abandon a plan to create an  "international pricing index" and use it as a benchmark to decide how much Medicare would pay for drugs covered by Part B, which covers physician visits for seniors and drugs prescribed to them during their visits.

PhRMA hasn't decided whether the proposal would be limited to Part B or if it will also include drugs dispensed at retail pharmacies and purchased by Part D.

The PhRMA board is likely to endorse the proposal, according to the pharma executives that spoke with BioCentry, who asked not to be named.

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