HHS Secretary Azar's plans new system for buying Part B drugs

On Monday, Health and Human Service Secretary Alex Azar delivered remarks on  President Trump's blueprint to bring down the high price of prescription drugs and put American patients first.

"You heard President Trump make it clear on Friday how important tougher negotiation is. That is exactly what our plan brings to Medicare, in an effective and targeted fashion. We are delivering on President Trump's promise to do smart bidding and tough negotiation in Medicare: We are going to bring negotiation to where it doesn't exist, in Part B, and making negotiation more effective than it is today, in Part D."

"You can imagine what happens when you're developing a drug: It's much more appealing for the drug to go into Part B, where the government just pays the bill you send them, than Part D. ... In short order, we will be issuing a request for proposal to make new use of an alternative system for buying Part B drugs, a Competitive Acquisition Program. We believe there are more private sector entities equipped to negotiate these better deals in Part B, and we want to let them do it. More broadly, the President has called for me to merge Medicare Part B into Part D, where negotiation has been so successful."