HHS Denies Proposed Pricing Index Equates to Price Controls

December 13, 2018

HHS pushed back against criticism by conservative groups of its proposed demonstration project to link Medicare Part B drug pricing to those of other countries.

More than 50 advocacy groups slammed the administration’s proposed pilot project for an International Pricing Index (IPI), charging that it was akin to price controls and would stifle drug innovation.

“Medicare isn’t proposing to set prices in Medicare Part B; it already sets prices in Medicare Part B,” said John O’Brien, senior advisor to the HHS Secretary for drug pricing reform. “Free market advocates and those who have philosophical concerns about government price-fixing should be among the most vocal opponents of the status quo.”

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