This afternoon, President Obama released his
proposed budget for fiscal year 2014. Among several cost-cutting measures designed to preserve Medicare solvency is a proposal to reduce reimbursement for life-sustaining cancer drugs. Currently, reimbursement to physicians for “Part B” drugs is based on the average sales price plus a 6 percent payment for services needed to administer chemotherapy in physicians’ offices, where most cancer patients receive their care. The President has proposed to reduce the 6 percent service payment to 3 percent. (The budget proposal appears to apply cuts primarily to physicians, but also mentions rebates that will be required by manufacturers.)
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