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Medicare should continue to pay average sales price plus 6% for most separately payable Part B drugs, but cap ASP inflation, AHA told the Medicare Payment Advisory Commission in comments submitted today. 

At its January meeting, MedPAC discussed modifying the ASP add-on payment to the lesser of 6%, 3% plus $24, or $220 per drug per day; and using reference pricing to address high prices and price growth for new and existing drugs with therapeutic alternatives. AHA expressed concern that both proposals would shift responsibility for rapid growth in drug prices from drug makers to hospitals and patients.

Among other comments, AHA recommended Medicare permanently extend certain telehealth flexibilities used to expand access to care during the COVID-19 pandemic and reconsider certain other policy options that run contrary to what these permanent extensions would accomplish.