Latest News

HHS to target step therapy, Stark Law in 2019


 

REPORTING FROM AMA NATIONAL ADVOCACY CONFERENCE

Addressing issues related to step therapy and adapting the Stark Law for a value-based care environment are on the Department of Health & Human Service’s agenda this year, according to agency Secretary Alex M. Azar II.

HHS Secretary Alex Azar speaking at the AMA National Advocacy Conference, Feb. 12, 2019 Gregory Twachtman/MDedge News

HHS Secretary Alex Azar speaking at the AMA National Advocacy Conference, Feb. 12, 2019.

Speaking Feb. 12 at the American Medical Association’s National Advocacy Conference, Secretary Azar said the agency will be looking into ensuring that patients on medical plans who have found a working drug after going through a step-therapy protocol will not have to restart on a drug that has already failed for them if they switch insurance providers.

“I was very disturbed to hear that stable patients switching among insurance plans, like switching among Medicare Advantage plans, can often be required to start over again on a step therapy regimen,” he said.

“This is not just potentially injurious to their health, it’s also penny-wise and pound-foolish,” Secretary Azar continued. “We know that getting a patient on the right drug, at the right time, is one of the best investments we can make in their health, and we do not want to impede physicians from making that happen. We’re looking at how we can address that issue now.”

The other area Secretary Azar highlighted that the agency is working on is making changes to the Stark Law.

“The Stark Law was written with noble purposes in mind, but it was designed for a fee-for-service system, not the kind of system we are moving toward today,” he said. “We’ve heard from many, many stakeholders, including the AMA, about the need to update the enumerated exceptions in the Stark Law to include value-based approaches to care.”

He added that how care coordination interacts with the antikickback statutes and HIPAA are also going to be examined.

Secretary Azar did not offer any timelines or other more specific details about how the agency plans to tackle these issues.

He used most of his speech to discuss recent regulatory actions around drug pricing and pushed for support for the Part B drug pricing model that the agency is preparing for a formal proposed rule, despite having received a critical reception from medical societies.

“If you have a small practice that uses infusions, and you don’t want to bear the risk of buy and bill, now you’re off the hook,” he said. “We’ll allow you to work with private vendors who can take the risk for buying the drugs in a way that isn’t possible today. But if you’re part of a much larger practice that’s able to drive a better deal than you could on your own, or want to band together with other practices to do the purchasing, then you can do that, too.”

He continued: “Next is the launch of the actual proposed rule, followed by the rule itself, which, I’ll remind you, is just a model.”

However, despite it being a model under test from the Center for Medicare & Medicaid Innovation, the advanced notice of proposed rule making that was issued in October 2018 suggested that participation in the so-called International Pricing Index model would be mandatory.

Secretary Azar did not acknowledge any mandatory participation in his pitch for support, noting that CMMI models “are carefully assessed. We will closely monitor how the model will affect clinical outcomes, including patients’ adherence to their drugs. We believe that the lower costs will, of course, mean better patient access to drugs, better adherence, and better outcomes for the care you provide. That is the goal.”

Recommended Reading

Winners and losers under bold Trump plan to slash drug rebate deals
MDedge Internal Medicine
President Trump calls for end to HIV/AIDS, pediatric cancer
MDedge Internal Medicine
Cloud of inconsistency hangs over cannabis data
MDedge Internal Medicine
Hearing drills into patient impact of ACA legal challenge
MDedge Internal Medicine
Trump administration salutes parade of generic drug approvals, but hundreds aren’t for sale
MDedge Internal Medicine
Flu activity hits seasonal high
MDedge Internal Medicine
ALA report: Federal and state actions to limit tobacco use fall short
MDedge Internal Medicine
United States now over 100 measles cases for the year
MDedge Internal Medicine
Terminating an employee
MDedge Internal Medicine
Conservatism spreads in prostate cancer
MDedge Internal Medicine