Pallone Statement at Health Hearing on Medicare Part B Drug Payment Model

Energy and Commerce Ranking Member Frank Pallone, Jr. (D-NJ) today delivered the following remarks at a Health Subcommittee Hearing on the Medicare Program Part B Drug Payment Model:

Thank you Mr. Chairman. And thank you to the witnesses for testifying today. I think we would all agree that it is critical we continue to transform our health care system into one that incentivizes value over volume. That is a theme we heard time and again when we worked together to repeal the SGR and replaced it with a payment system that rewards doctors for the quality of care they give to seniors. We were all in agreement that more care must be replaced with better care. The status quo, we said, was unsustainable.

The success of this kind of delivery system reform, however, is not possible if we do not give Medicare the tools to stay in business. Medicare must be able to innovate, just like the private sector is doing. That is why I support the Innovation Center that was authorized in the Affordable Care Act because it allows Medicare to test new models that improve care and save money.

Now we have all heard loud and clear that there are concerns with the Center’s most recent proposal to change the way we reimburse doctors for drugs administered in their offices under Part B. I look forward to hearing more from our witnesses today about the rule. I don’t think anyone here would claim this proposal is perfect. I am particularly interested in hearing about how to ensure that seniors have access to necessary drugs. I’m also interested in better understanding how we can ensure that the evaluation of this proposed model is robust and thorough before it is expanded.

To date, there has been widespread engagement, ranging from comments from stakeholders to letters from Members of Congress. This feedback is an important part of the process, and I believe the Administration will take into account these concerns and make changes to address them in the final rule.

I’d like to yield the remainder of my time to Congresswoman Schakowsky.