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Medicare advisers eye binding arbitration to control drug prices
Modern Healthcare

A key panel of advisers is considering recommending that Congress adopt binding arbitration for Medicare Part B drugs that have extremely high launch prices.

Several members of the Medicare Payment Advisory Commission (MedPAC) on Thursday favored suggesting a system where a neutral agent would decide on a price for drugs purchased under Medicare Part B if they meet certain criteria.

“We have to do something to slow these launch prices, so I think binding arbitration is a way to get that done so I want to push forward,” said Warner Thomas, president and CEO of Ochsner Health System, a not-for-profit academic healthcare system in Louisiana.