Incubate Responds to Medicare Most Favored Nation Drug Pricing Demonstrations

WASHINGTON (December 19) – Today, the Center for Medicare and Medicaid Innovation (CMMI) announced a proposed series of Medicare drug pricing demonstrations affecting some Part B and Part D medicines, respectively. The Global Benchmark for Efficient Drug Pricing (GLOBE) and Guarding U.S. Medicare Against Rising Drug Costs (GUARD) demonstrations would significantly restructure Medicare drug reimbursement and coverage, pegging Medicare Part B and Part D drug prices to those paid in foreign countries with strict price controls.

Incubate's executive director, John Stanford, issued the following statement:

"As the voice of early-stage life sciences investors, Incubate remains firmly opposed to the use of Most Favored Nation-style price controls in any form, including sweeping Medicare demonstrations that would mandate price controls across broad categories of Part B and Part D medicines.

"Imposing price controls through mandatory Medicare demonstrations would impede scientific and medical progress. In sharp contrast to the voluntary pricing agreements recently struck by the Trump administration with individual companies, these far-reaching demonstrations would make funding life sciences research and development a much riskier and less attractive proposition for early-stage companies and their investors.

"Pegging U.S. drug prices to those set by foreign governments increases uncertainty and weakens investor confidence, leading companies to reevaluate and scale back high-risk, high-impact research."The United States has long led the world in life sciences innovation because it chose a different path -- one that rewards risk-taking and the possibility of breakthrough discoveries. Undermining that model threatens future cures and America's global scientific leadership."

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Statement on CMMI Medicare Drug Pricing Demonstrations.pdf

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