White House Backs Off Drug Initiative --- Delay in Reduced Payments Expected on Medicines For Cancer, Hemophilia
WASHINGTON -- Facing intense pressure from cancer doctors and some members of Congress, the Clinton administration will put off plans to reduce payments for cancer and hemophilia drugs, officials said.</br></br>In June, the Health Care Financing Administration, which runs Medicare, said that beginning this fall it would reduce overpayments for about 50 drugs, including those used to treat respiratory disease. But the agency now plans to announce that it won't reduce its payments for cancer and hemophilia drugs anytime soon and instead will study the issue further.</br></br>It isn't clear exactly how many drugs will be affected. About one-third of the 50 drugs are chemotherapy drugs. However, many of the others are used in conjunction with cancer therapy.</br></br>The agency's decision is a big victory for the cancer doctors, a politically powerful group represented by the American Society of Clinical Oncology. Throughout the summer, cancer specialists and patient advocates have mounted an aggressive campaign to derail the payment reductions. The physicians, sometimes accompanied by patients, argued in Congress that they wouldn't be able to afford to administer chemotherapy in their offices if the price cuts went into effect.</br></br>The doctors concede that Medicare reimbursements for cancer drugs may be inflated, but they say they need the higher reimbursements to offset sharp underpayments for administering chemotherapy. The doctors want any changes in drug reimbursements delayed until payments for other expenses are increased.