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Testing Part B Payment Cuts: Sequester Means Providers Get ASP+4%

 
• By Cathy Kelly and Michael McCaughan

Cutting the payment level for Medicare Part B drugs is a perennial budget proposal, but never gets very far in Congress. Now, thanks to the sequester, Part B payments have been cut from ASP+6% to ASP+4.3%. Will it stick?

Ever since Part B drug reimbursement switched to Average Sales Price plus 6% in 2004, there has been debate over whether that “plus 6” could be reduced to save some money for the Medicare program.

Budget cutters routinely throw out the idea of cutting the payment to ASP+4%, arguing that providers will still be making...

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