Value-based payments may lessen the impact of escalating drug prices, but it will not cure the problem, according to a recent perspective.

The author notes that CMS is encouraging clinicians to prescribe more efficiently because it has the leverage to do so. Doing the same with pharmaceutical manufacturers is a different story because, among other things, it will require congressional approval.

CMS’s programs will result in slowed price growth, at best, the author continued, but impactful drug spending control will necessitate addressing the underlying price problem itself.

The author also made observations related to oncology:

• Many small oncology practices have closed or have been bought by hospitals, which can more easily negotiate purchasing, manage inventory, and obtain discounts.

• Oncology practice guidelines and formularies reveal a limited number of opportunities for substitution of similarly effective, lower-cost drug alternatives.

Citation: Schrag D. Reimbursing wisely? CMS’s trial of Medicare Part B drug payment reform. N Engl J Med. 2016;374(22):2101-2105. doi:10.1056/NEJMp1603735.