Medicare Part B Reimbursement of Prescription Drugs

This ASPE Issue Brief describes how Medicare Part B reimburses the cost of prescription drugs administered in physician offices and hospital outpatient settings. It explains the changes made to the reimbursement system under the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, summarizes the direct consequences of these changes, and presents analysis of drug price variation subsequent to these changes.

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