CMS Withdraws Harmful Medicare Part B Demonstration

Oct. 22, 2017

On August 25, the Centers of Medicare and Medicaid Services (CMS) officially withdrew the proposed Center for Medicare & Medicaid Innovation (CMMI) Part B Demonstration, the “Medicare Part B Drug Payment Model” (CMS-1670-F).

The proposed rule, published in March 2016, proposed a two-phase nationwide mandatory “demonstration” to test new Medicare Part B prescription drug models, purportedly to test prescribing incentives (despite the fact that many of the impacted practices do not have alternatives to the drugs they administer). CLSA has strongly opposed the proposed rule since it was announced because of our concerns about the impact of the policy on innovation and patient access to needed therapies for critically ill patients.

Over the past year and a half, CLSA worked with the California congressional delegation and our partners at the national trade associations in calling for a repeal of the proposed rule. CLSA’s May 2016 comments to CMS asking for withdrawal of the proposed rule – sent in collaboration with California regional life sciences associations Biocom, CONNECT and SoCalBio – are available here. As a result of CLSA’s engagement and advocacy, a total of 31 bipartisan members of the California congressional delegation (12 Republicans, 19 Democrats) signed at least one letter expressing serious concerns or opposition to the CMMI proposed Part B rule.

For questions, please contact Jenny Carey, CLSA’s Vice President of Federal Government Relations and Alliance Development (