Medicare will pay Indian Health Service hospitals more for expensive drugs
What happened
Medicare will now pay Indian Health Service and Tribal hospitals extra for high-cost drugs given in outpatient settings. This means these facilities will get an add-on payment on top of their usual all-inclusive rate, starting January 1, 2025.
Why it matters
Indian Health Service and Tribal facilities have long struggled with underfunding, especially for expensive treatments. This change means they can now afford to provide high-cost drugs without losing money, which should improve access to care for Native American communities. It also means these facilities can offer a wider range of treatments that were previously financially out of reach.
The signal
Watch for an increase in the availability of high-cost drug treatments at Indian Health Service and Tribal facilities in 2025.