Recently, the Obama administration announced a major rules change for how certain drug treatments will be paid for under Medicare Part B. The treatments, most notably those for cancer, are currently reimbursed by adding %6 to the average sales cost of the specific drug. However, critics have long called for change since, they argue, it gives many doctors the incentive to prescribe more expensive drugs to boost profits. The new plan would now pay a daily dosage fee plus %2.5 to all doctors offering the covered treatments in the hopes it will drive down cost. However, opposition to the change has been fierce particularly from the American Society of Clinical Oncologist which claimed that it is absurd to think doctors would prescribe deliberately expensive drugs. Despite the opposition, primary care physicians and consumer groups have been quick to praise the change since the incentive to avoid cheaper drugs is far too strong under the current regime. As of now, public comment on the change is still open with alterations possible based on the feedback.
See, Medicare plan on payment for cancer drugs stirs battle, KRQE News 13, April 16, 2016.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
