Proposed Medicare $2 Drug List Model May Only Offer Modest Savings

  • Oct 10, 2024

    CMS on Oct. 9 released a request for information and sample list of medications that could be part of the Medicare $2 Drug List Model, which the agency first floated last year to help lower the cost of common generic medications for beneficiaries with chronic conditions. However, a recent analysis published in JAMA Internal Medicine found the model may only lead to modest savings and impact fewer than 40% of enrollees. 

    While Christopher L. Cai, M.D., the study’s lead author, tells AIS Health he was “initially surprised” by the results, he notes the model is voluntary, so CMS is in a bind because it needs to design a program that saves money for members but is also attractive to plan sponsors. 

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  • Tim Casey

    Tim has been a reporter and editor for newspapers, websites and magazines for more than 20 years, including 10 years covering health care business topics. He has a deep knowledge of the managed care industry and pharmacy benefit management. He also has experience covering medical conferences and clinical and legislative health care issues. In 2014, the Society for Advancing Business Editing and Writing selected Tim as one of 15 journalists to participate in a national symposium on the Affordable Care Act. Tim has a B.A. in Psychology from the University of Notre Dame and an M.B.A. from Georgetown University.

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