The Centers for Medicare & Medicaid Services has announced the decision to drop a proposal on reimbursement for physician-administered drugs in Medicare Part B. The mandatory, five-year demonstration project would have tested different payment models on outpatient drugs. The decision to scrap plans came after reviewing public comments.

In response, American Medical Association President Andrew W. Gurman, MD, released the following statement:

"This is a model for how Washington should - but often doesn't - work. When the Center for Medicare & Medicaid Innovation (CMMI) made the recommendation to make changes to Medicare Part B, CMMI and CMS officials welcomed feedback. The AMA and others explained how the proposal would hurt patient care. CMMI then re-evaluated its original proposal, resulting in the announcement that CMS would not go forward with these changes. We are grateful that CMS came to the right decision after listing to stakeholders.

"The Innovation Center can be a valuable tool in developing innovative health care payment and service delivery models. We look forward to continue working with it as Washington grapples with ways to implement MACRA and to reform health care payment systems."