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2006 proposed fee schedule - American Society of Clinical Oncology

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additional 0.7 percent addition to the CY 2005 add-on <strong>of</strong> 8.1<br />

percent.<br />

(3) Proposed Drug Add-On Adjustment for CY <strong>2006</strong><br />

With the recalculated CY 2005 add-on to the per<br />

treatment composite rate being 8.1 percent and with the<br />

additional increment for expenditures in CY <strong>2006</strong> being 0.7<br />

percent, we combine them to produce one drug add-on<br />

adjustment for CY <strong>2006</strong> that would be 8.9 percent.<br />

(4) Add-On for Spread for Drugs Furnished in Hospital-Based<br />

Facilities<br />

In its June 2005 Report to Congress, MedPAC recommended<br />

that payment differences be eliminated for separately billed<br />

drugs furnished in independent and hospital-based facilities<br />

and that all these drugs be paid under the ASP +6 percent<br />

system. While we agree with MedPAC that paying the same<br />

rates in both settings would be the preferable policy, we<br />

have not <strong>proposed</strong> this policy because data on dosing units<br />

for drugs furnished by hospital-based facilities are not<br />

available. This data is needed to estimate the drug<br />

payments using ASP +6 percent pricing. That is a key<br />

component <strong>of</strong> the calculation <strong>of</strong> the drug add-on adjustment.<br />

In their report, MedPAC acknowledges these data issues and<br />

recommends that CMS take steps to collect data on<br />

acquisition costs and payment per unit for drugs provided in<br />

hospital-based ESRD facilities. We are currently examining

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