Sequester Cuts Hit Medicare

Today I read an interesting article on MSN dealing with how the "Sequester Cuts Hit Medicare". Initially, I did not see this being to bad of an issue; however, after further review and a clarification from an MSN article (stating it is true) there could be some issues for those having Part B Cancer Drugs administered in their physicians office.

Sequester Cuts Hit Medicare

Brief Overview: It appears that due to the sequester cuts that take place April 1st, doctors offices (oncologists) are not wanting to administer the cancer drugs (Under Part B) due to the costs and the possibility of losing money. Hospitals are predicted to receive an influx of patients if a deal is not reached in Congress - which could hurt Medicare worst since it is approximately $6,500 more expensive to administer these prescriptions in the hospital versus the doctors office.

When the average person hears about Medicare and prescriptions they generally assume Medicare Part D, the prescription drug coverage of Medicare. However, the sequester cuts affected Medicare Part B (Medical Portion) which affects the prescriptions that are administered in the doctors offices. Most of the times these drugs are cancer drugs which have extremely high premiums.

As stated by MSN - NEWS ARTICLE:

That's not sitting well with clinic oncologists, who are typically paid by the government for the costs of chemotherapy drugs, plus 6% to cover the cost of storing and administering them. Since drug costs are fixed, the sequester cut would come directly out of oncologists' other costs, which makes it a far more potent reduction for doctors.

These sequester cuts hit Medicare Part B hard and now physicians are lobbying their congress men and women for help in getting these covered at the full rate once again.

Medicare Supplement Plans and the Sequester Cuts

Medicare Supplement Insurance will not be affected by these cuts. Medicare Supplement plans fill in the gaps of covered services. If there is just a reduction in reimbursement to providers and insurance companies work off the Medicare Assignment fees then Medicare and Supplemental Insurance Companies will not be affected but have less of a burden.

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