Did You Know: Average Sales Price Methodology

Medicare Part B drug costs are primarily calculated using the Average Sales Price (ASP) methodology. Here's a breakdown of the process:

• Data Collection: Manufacturers submit sales data, including discounts, to the Centers for Medicare & Medicaid Services (CMS).
• Calculation: CMS calculates the ASP for each drug based on the submitted data.
• Payment Rate: Medicare pays for most separately payable Part B drugs at a rate of ASP plus 6% 

This methodology ensures that the payment rates reflect the actual market prices of the drugs, including any discounts or rebates provided by manufacturer.

Learn more: https://www.cms.gov/medicare/payment/fee-for-service-providers/part-b-drugs/average-drug-sales-price