Alzheimer’s Drug Costs Spur Reconsideration of Medicare Part B Rate Hike

The Biden administration is considering reducing the 15% hike for the standard Medicare Part B premium for this year after the maker of the new Alzheimer’s drug Aduhelm announced that it would halve the price of the controversial medication.

But after a preliminary decision by the Centers for Medicare and Medicaid Services (CMS) on Jan. 1 that it would limit coverage of Aduhelm to recipients in clinical trials for the medication, there may be calls for a larger rate cut. A final decision will be issued in April.

When setting Medicare Part B rates for 2022, the CMS expected outlays for Aduhelm had contributed to half of the jump in Part B premiums to $170.10 a month for 2022, from $148.50 in 2021.

That’s despite not knowing at the time to what extent Medicare would cover the Biogen-manufactured drug. The extent was just decided with the most recent CMS announcement. Alzheimer’s Drug Costs Spur Reconsideration of Medicare Part B Rate Hike