This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Joint Statement On The President's Budget From The American Society Of Clinical Oncology, Community Oncology Alliance, ION Solutions And The US Oncology Network





President's Proposed Budget Doubles Down On Sequester Cut To Cancer Drugs; Jeopardizes Cancer Care For Seniors

WASHINGTON, April 12, 2013 /PRNewswire-USNewswire/ -- The President has released his proposed budget for fiscal year 2014, which proposes new reductions for cancer care services.  Taken in combination with existing strains imposed by sequestration, this proposal threatens access to care for some of America's most vulnerable:  elderly patients with cancer.  In addition to reduced payments for cancer fighting drugs, the Administration has proposed new limitations on imaging technology used to diagnose and manage cancer.  Cast by the President as strategies for improving long term solvency of the Medicare program, these proposed policies will, instead, have the effect of increasing cost to the Administration.  By straining community oncology clinics to their breaking point, the Medicare program will push practices to either limit Medicare services or close their doors altogether. That will send patients to more expensive settings for treatment.  Over the past two weeks, our organizations have urged Congress and the Administration to reverse the cut to cancer drugs imposed by sequestration and we object in the strongest possible terms to any proposal that would add to the existing crisis.

The President's budget proposes to cut Medicare reimbursement from Average Sales Price (ASP) of cancer drugs plus the 6 percent facilities/operations services fee to ASP plus 3 percent.  As it is, the Medicare payment rate for drugs set at ASP plus 6 percent is in actuality closer to a total of ASP plus 2 percent because Medicare's payment formula includes prompt pay discounts manufacturers provide to drug wholesalers but which are not available to cancer clinics.  Added to that is the fact that many patients without secondary insurance often cannot afford copayment for increasingly expensive anti-cancer drugs, a problem that has increased the burden of bad debt for many practices.  As a result, even at ASP plus 6 percent, many cancer drugs are reimbursed by Medicare at less than their total costs of acquisition, storage, and handling.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs