Drug Pricing Lab 05/14/2018

Competitive Acquisition Program

A look at Medicare Part B's Competitive Acquisition Program ahead of President Trump's Blueprint to Lower Drug Prices.

President Trump's plan to address drug pricing includes a re-introduction of the Competitive Acquisition Program (CAP).

The key notion of CAP was to have a vendor to use its market leverage to bid for Part B drugs and biologics on behalf of providers. This policy brief looks at some key features to Medicare Part B's Competitive Acquisition Program and its potential to influence drug pricing.

Features to keep an eye on:

  • Potential to target the high leverage drugs.
  • Potential to help small practices.
  • Potential for negotiating lower prices.
  • Potential to enable more sophisticated payment models.
  • Undoing the inflationary incentives of the 6% markup.

Download the report here.

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