MedPAC debates reference pricing, arbitration to bring down prices in Part B

The Medicare Payment Advisory Commission is weighing reference pricing and binding arbitration as possible solutions for rising drug prices in Part B. In a report at its monthly meeting on Thursday morning, MedPAC staffers outlined the two approaches, which could be considered individually or combined into a larger package aimed at drug costs. The goal, analysts Nancy Ray and Kim Neuman said, is to expand a reform package the commission recommended in 2017 and has yet to go anywhere in Congress. MedPAC recommended that the current pricing system for Part B drugs—average sales price plus 6%—be improved through consolidated billing codes as providers move toward an alternative system: the drug value program (DVP).