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2006 proposed fee schedule - American Society of Clinical Oncology

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<strong>2006</strong>, we project total Medicare revenues to oncologists<br />

would decline by 5.6 percent. However, if the volume <strong>of</strong><br />

342<br />

drugs and PFS services increased at historical rates, total<br />

Medicare revenues for hematology/oncology would increase by<br />

8.1 percent between 2005 and <strong>2006</strong>.<br />

Specialty<br />

HEMATOLO<br />

GY/<br />

ONCOLOGY<br />

TABLE 35--Impact <strong>of</strong> Drug and Physician Fee Schedule<br />

Payment Changes<br />

Physician Fee Schedule Drugs All Revenues<br />

% <strong>of</strong> Total<br />

Medicare<br />

Revenues<br />

from Fee<br />

Schedule<br />

% Change<br />

Medicare<br />

Physician<br />

Fee<br />

Schedule<br />

Revenues<br />

% Change<br />

One-Year<br />

Demonstration<br />

Project<br />

% <strong>of</strong> Total<br />

Medicare<br />

Revenues<br />

from<br />

Drugs<br />

% Change<br />

Medicare<br />

Drug<br />

Revenues<br />

Combined<br />

% Change<br />

All<br />

Medicare<br />

Revenues<br />

*<br />

Combined<br />

% Change<br />

All<br />

Medicare<br />

Revenues<br />

With<br />

Utilization<br />

Increase*<br />

*<br />

28% -5.2% -15% 69% 0% -5.6% 8.1%<br />

*Note: Reflects changes in total Medicare revenues assuming no changes in utilization. Calculation reflects average<br />

changes in <strong>fee</strong> <strong>schedule</strong> payments and for drugs weighted by percent <strong>of</strong> Medicare revenues.<br />

** Note: We estimate that Medicare payments to oncologists would increase by 8% between 2005 and <strong>2006</strong> if<br />

growth in the volume <strong>of</strong> drugs and physician <strong>fee</strong> <strong>schedule</strong> services were to grow at historical rates, despite the effect<br />

<strong>of</strong> the end <strong>of</strong> the one-year demonstration project.<br />

B. Geographic Practice Cost Indices (GPCI)- Payment<br />

Localities<br />

As discussed in section II.B. <strong>of</strong> the preamble to this<br />

<strong>proposed</strong> rule, we are proposing two changes to the<br />

California GPCI payment localities. We are proposing to<br />

remove both Santa Cruz County and Sonoma County from the<br />

Rest <strong>of</strong> California payment locality, and make both <strong>of</strong> those<br />

counties separate payment localities.<br />

In the November 15, 2004 final rule, we published 2005<br />

and <strong>2006</strong> GPCI and GAF values reflecting the 2 year phase-in

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