IPAB delay boosts biotech markets

Biotech stocks posted moderate gains Wednesday after the Medicare Board of Trustees released a report that said spending growth had not met the threshold required to trigger savings recommendations from the Independent Payment Advisory Board. The report projected that Medicare spending increases will trigger IPAB recommendations in 2017. Under the Affordable Care Act, IPAB recommendations will be instituted automatically unless legislation is enacted making alternative cuts of the same magnitude.

The trustees' report also predicted spending increases by Medicare's Part D drug program will "exceed the rate of increase in other categories of medical spending due to an expected slowing of the trend toward greater generic usage and a continuing increase in the use and price of specialty drugs." ...