Primer: Medicare Part B Drug Payment System

As federal officials and policymakers review the effectiveness of the average sale price (ASP) methodology, the success of this payment system should be taken into consideration. The ASP methodology has stabilized spending growth for Part B drugs, and prevented the continued significant growth of Part B drug spending. The 6 percent add-on also strikes a careful balance that allows for physicians to continue participating in the program and patients continued access to care. Review of the ASP methodology should recognize the existing fragile balance between budgetary savings and sufficient provider reimbursement levels that ASP offers today.

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