Medicare proposes limiting coverage of controversial Alzheimer’s drug
Shares of drugmaker Biogen tumbled almost 7% yesterday after Medicare placed limits on its coverage of the company’s new Alzheimer’s drug.
Biogen had already slashed the price tag for the medication by half to $28,000 a year.
Medicare’s decision is preliminary, with a final ruling expected in April after a public comment period.
Medicare’s decision to only cover the FDA-approved drug Aduhelm in clinical trials marks a break from common practice.
That’s according to Washington University law professor Rachel Sachs, who said Medicare is sending a strong message “that just because the FDA approves the drug, doesn’t mean Medicare has to reimburse for it.”