CMS chief says Part D discount data would harm negotiations

12 March 2007

The Acting Administrator of the US Centers for Medicare and Medicaid Services (CMS) has stated, in written responses to members of the US House of Representatives, that she will not publish data about the levels of discounts secured by pharmacy benefit managers for the Medicare Part D prescription drug benefit.

Leslie Norwalk argues that "several independent entities, including the Congressional Budget Office and the Federal Trade Commission, have concluded that public disclosure of negotiated price concessions will reduce the ability of pharmacy benefit managers and plans to negotiate significant discounts."

However, Ms Norwalk added: "we recognize that Congress has a legitimate role on overseeing" the prescription drug program and that she is investigating avenues by which the CMS could make some information available. The Acting CMS Administrator also said that, according to the CBO, disclosure could cost up to $40.0 billion in higher drug prices over the next 10 years.

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