For 2-3 Years, CMS Could Pay 340B Hospitals More for Pricey New Alzheimer’s Drug Than Current Norm
Medicare likely would pay 340B hospitals 106% of the average sales price (ASP) for Aduhelm—Biogen’s high-cost biologic drug for early-stage Alzheimer’s disease—for the first two or three years it is on the market, not the ASP minus 22.5% 340B hospital payment rate for most Part B drugs, congressional Medicare advisers say.
The Medicare Payment Advisory Commission (MedPAC) made that observation in its March 2022 report to Congress this week Tuesday. It was buried in a discussion about how Aduhelm “exemplifies the challenges Medicare faces” with expensive new drugs and biologics with high launch prices.
MedPAC says that for two or three years CMS likely would pay 340B hospitals more for the expensive new Alzheimer’s drug Aduhelm than it normally would for a Part B drug.