GAO: Medicare change won't hurt oncologists

Oncologists will see a net increase in Medicare revenue for oncology drugs, their preparation and their administration in 2004 and 2005, despite reduced payments for certain drugs, the Government Accountability Office said. The Medicare Modernization Act of 2003 changed how the CMS pays for doctor-administered drugs to a system based on doctors' costs for the drugs from one based on average wholesale price. Providers feared the change would represent significant reimbursement cuts. The GAO said that in a review of 17 drugs, Medicare rates would exceed physician costs by 22% in 2004 and by 6% in 2005. -- by Tony Fong