tci Medicare Compliance & Reimbursement - 2005 Issue 41

PHARMACEUTICALS: HHS Reports Drug Payouts Are More Than Adequate

ASP info does not portend higher future pay rates.No matter how providers protest that payments for chemotherapy and other drugs are inadequate, Medicare just won't listen. And now it's got more justification for its reductions. A new report from the HHS Office of Inspector General says providers actually received more than their costs for drugs as a result of the average sales price system. The ASP system reduced Medicare reimbursement for cancer treatment drugs in the past, but an Oct. 5 OIG report claims that Medicare's drug payments in 2005 are sufficient. Hematology, hematology/oncology and medical oncology physician...

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