Medicare Looks to Cut Drug Costs By Changing How It Pays Doctors
Medicare is going to test new ways to reimburse doctors for medications, in hopes they'll choose less expensive drugs.
Oncologists may feel pressure from their health system to choose more costly drugs, even when not appropriate for a given patients.
Under the current system, a doctor earns just 60 cents for administering a $10 medication. Meanwhile, an equivalent drug that costs $1,000 would bring in $60. A new proposed plan would alter payment under Medicare Part B, which covers drugs administered in doctors offices or outpatient hospital clinics. The plan hopes to eliminate incentives for doctors to use more expensive drugs when cheaper alternatives are available.
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