ARTICLE | Finance

CMS: Could have been worse

August 2, 2004 7:00 AM UTC

While the Centers for Medicare & Medicaid Services made some fairly dramatic reductions in reimbursement of Part B drugs under its Physician's Fee Schedule for 2005, in general Wall Street heaved a sigh of relief last week that the changes weren't more onerous.

In its proposed rule, the agency plans to base reimbursement on "average sales prices" (ASP), which it expects will reflect the true acquisition costs for drugs more closely than the previously used "average wholesale price" (AWP). Indeed, CMS believes it has been significantly overpaying for Part B drugs and says it could save up to $530 million through its overhaul. ...