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WASHINGTON — New documents obtained by STAT outline how Medicare is planning to build out a sizable new bureaucratic infrastructure to handle its new power to negotiate drug prices and penalize drugmakers for price hikes.

In materials sent to lawmakers earlier this month, CMS proposes establishing a Medicare Drug Rebate and Negotiations Group with six divisions:

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  • Division of Rebate Agreements & Drug Price Negotiations
  • Division of Policy
  • Division of Data Assessment and Analytics
  • Division of Manufacturer Data and Inflation Rebate Operations
  • Division of Manufacturer Compliance and Oversight
  • Division of Contract Support

The proposal includes hiring 95 full-time employees, according to the organizational chart CMS provided. The roles include analysts, contracting officers, pharmacists, data managers, and economists, the documents show.

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