CMS’s Verma outlines new drug payment options

CMS Administrator Seema Verma Thursday outlined three types of payment arrangements the agency is considering for new, expensive medicines, such as gene therapies.

Speaking at the Brookings Institution, Verma said CMS may modify its regulations to allow for Medicare to pay for a “drug over time only if a patient achieves certain clinical outcomes.” Another model the agency is considering is “paying for a drug through a shared savings approach based on the drug’s impact on the patient’s total cost of care.” CMS is also exploring “paying for a drug under a subscription approach with an upfront fee in exchange for as many doses of the drug that are clinically necessary.”...