Medicare Cut for Cancer Drugs Proposed [View All]

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http://story.news.yahoo.com/news?tmpl=story&cid=514&e=4&u=/ap/20040727/ap_on_go_ca_st_pe/prescription_drugs_10

By MARK SHERMAN, Associated Press Writer

WASHINGTON - The Bush administration proposed cutting Medicare payment rates Tuesday for doctors providing cancer treatment in their offices, projecting savings of $530 million amid concerns that some specialists would reduce their practices.



Medicare chief Mark McClellan said the government is paying far too much for cancer drugs administered in doctors' offices — up to 50 percent more than typical sales prices for some medicines used to treat prostate cancer. The changes, to take place in 2005, would make payments competitive with prices negotiated by other health plans, he said.


Cancer specialists' revenues could decline 2 percent to 8 percent, McClellan said.


Drugs dispensed in doctors' offices to treat lung illnesses, for which Medicare pays 90 percent more than the actual sales price, also would be affected by the proposed changes, he said.