Summary
WHG has prepared an issue brief to provide background information on the Centers for Medicare and Medicaid Services’ (CMS) Medicare Part B Drug and Biological Competitive Acquisition Program (CAP). Although the program is no longer in operation, it has come under renewed attention as a component of the recently-announced American Patients First: The Trump Administration Blueprint to Reduce Drug Prices and Patient Out-of-Pocket Costs (Blueprint). Shortly after the release of the Blueprint, Secretary Azar said that CMS would be announcing an RFI to “to make new use of an alternative system for buying Part B drugs.”
This issue brief reviews the CAP model’s key aspects, lessons learned from its prior iteration, and current policy considerations including suggestions put forth by the Medicare Payment Advisory Commission (MedPAC).