CMS drops Part B demo

CMS said Friday it will not move forward with its Medicare Part B value-based drug purchasing demonstration project. The plan would have tested the effects of changing reimbursement formulas for Part B drugs and, in a second phase, added value-based purchasing programs. In a statement, the agency said it chose not to finalize a proposed rule for the plan due to the "complexity of the issues and the limited time available," and noted that "a number of stakeholders expressed strong concerns."

PhRMA, BIO, physician groups, Republicans and Democrats have all criticized the proposed rule, saying it will add expenses for physicians and set a precedent for control of drug pricing (see BioCentury, May 23)...