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Coming Soon? Part D Covered Drug Moves to Part B

By Lee H. Rosebush & Lindsay Holmes on August 15, 2016
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We may soon see a provision in the 2015 final rule addressing the utilization of end-stage renal disease related drugs and biologics come into action in the next few months. Specifically, the oral-only drug Sensipar may transition to bundled payment and become reclassified as a Medicare Part B covered drug should a non-oral form be approved by the FDA. Prescribers and dispensers should be aware that a transition is possible and will likely impact reimbursement for this product.

The drug Sensipar is currently considered an oral-only drug product. However, in 2015, a biopharmaceutical company submitted a new drug application for a calcimimetic agent that can be administered intravenously. Under the final rule, approval of this product would likely reclassify the oral-only form as a non-oral-only product and subject it to inclusion in a bundled payment. In other words, if an IV form is approved by the FDA, it will be in a transition period for two years while CMS evaluates the utilization of both the oral and IV forms. If the oral form remains with no FDA-approved IV form, the oral will continue to be paid separately under Medicare Part D.

FDA approval of the IV form is anticipated prior to the end of 2016.

 

Photo of Lee H. Rosebush Lee H. Rosebush
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Photo of Lindsay Holmes Lindsay Holmes
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  • Posted in:
    Health Care and Life Sciences
  • Blog:
    Health Law Update
  • Organization:
    Baker & Hostetler LLP
  • Article: View Original Source

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