WASHINGTON — The Trump administration on Monday offered a new critique of the way Medicare pays for drugs administered by doctors, hinting at potential changes that could draw broad ire from drug makers, hospitals, and doctors.

Centers for Medicare and Medicaid Services Administrator Seema Verma said the payment structure for Medicare Part B, which covers chemotherapy treatments and other physician-administered drugs, “creates a perverse incentive for manufacturers to set higher prices, and for providers to pick drugs that are more expensive.”

Unlock this article by subscribing to STAT Plus. Try it FREE for 30 days!

GET STARTED

What is it?

STAT Plus is a premium subscription that delivers daily market-moving biopharma coverage and in-depth science reporting from a team with decades of industry experience.

What's included?

  • Authoritative biopharma coverage and analysis, interviews with industry pioneers, policy analysis, and first looks at cutting edge laboratories and early stage research
  • Subscriber-only networking events and panel discussions across the country
  • Monthly subscriber-only live chats with our reporters and experts in the field
  • Discounted tickets to industry events and early-bird access to industry reports

Sign up for our Daily Recap newsletter

A roundup of STAT’s top stories of the day in science and medicine

Privacy Policy