The Obama administration's proposal to change the way providers are reimbursed for Medicare part B payments is drawing criticism from many leading physician organizations as well as legislators, according to The New York Times.
Here are six things to know:
1. Currently, every Senate Finance Committee member as well as more than 300 House members have voiced concern over the proposal, which they claim will limit patient access to medications.
2. American Cancer Society stated the proposal will strip cancer patients of their access to "lifesaving drugs needed to treat their diseases" in a letter to Sylvia Mathews Burwell, the secretary of health and human services.
3. In defense of their proposal, the Obama administration says the current Medicare payment formula reimburses physicians for prescribing costly drugs. Therefore, Ms. Burwell proposed the five-year nationwide test to incentivize physicians to prescribe less expensive therapies.
4. Some of the proposals include:
• Lowering the add-on payments from 6 percent to 2.5 percent with an additional $16.80 flat payment
• Decreasing or eliminating patient cost-sharing
• Analyzing physicians' prescribing patterns to create decision-support tools to help provide patients with the safest and most appropriate drug choices
• Setting standard prices for similar classes of drugs
• Implementing risk-sharing with drug companies
5. Nearly two dozen House Democrats argue the proposal may disrupt their constituents' care. Additionally, physicians in small groups and rural healthcare providers say they will have less purchasing power.
6. American Medical Association CEO James L. Madara, MD, argued officials should focus on manufacturers who price the drugs, rather than narrowing in on providers.
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