New Rules Will Help Align Medicare with Pace of Medical Innovation

Healthcare Leadership Council Applauds Decision to Increase Support for Innovative Treatments, Technologies

WASHINGTON – Proposed rules that will provide increases in Medicare reimbursements for the use of new medical treatments and technologies that can significantly improve patient care represent a much-needed change in the program’s payment methodologies, the president of the Healthcare Leadership Council (HLC) said today.

HLC president Mary R. Grealy praised provisions in the proposed Inpatient Prospective Payment System rule for fiscal year 2020 released by the Center for Medicare and Medicaid Services (CMS) this week.  The rule includes an increase in reimbursements for healthcare providers using sophisticated or innovative technologies and make changes in the way Medicare pays for therapies using technology that meets the FDA Breakthrough Devices classification.  HLC had advocated this change in a regulatory reform agenda it has shared with the administration.

“One of Medicare’s long-standing flaws has been the program’s inability to keep pace with transformative improvements in medical science and technology,” said Ms. Grealy.  “This proposed rule is a major step in a very necessary direction, better enabling patients to have access to the treatments and therapies that can save and strengthen their lives.

“Compliments to Administrator Verma and her team at CMS for understanding the role of innovation in improving healthcare quality and containing costs by improving population health.”