(I heard Mark talking about this article last evening. I didn't get to hear his whole take on it, but it sounded like he was questioning the premise that the "Sequester" had anything to do with this since Medicare (as well as the other entitlement programs) is not affected by the sequestration "cuts." More likely the reduced Medicare funding that is being described is a result of the $750MM Obamacare re-directed away from Medicare.)

Cancer clinics are turning away thousands of Medicare patients. Blame the sequester.

Cancer clinics across the country have begun turning away thousands of Medicare patients, blaming the sequester budget cuts.

Oncologists say the reduced funding, which took effect for Medicare on April 1, makes it impossible to administer expensive chemotherapy drugs while staying afloat financially. Patients at these clinics would need to seek treatment elsewhere, such as at hospitals that might not have the capacity to accommodate them. “If we treated the patients receiving the most expensive drugs, we’d be out of business in six months to a year,” said Jeff Vacirca, chief executive of North Shore Hematology Oncology Associates in New York. “The drugs we’re going to lose money on we’re not going to administer right now.” After an emergency meeting Tuesday, Vacirca’s clinics decided that they would no longer see one-third of their 16,000 Medicare patients. “A lot of us are in disbelief that this is happening,” he said. “It’s a choice between seeing these patients and staying in business.”

Some who have been pushing the federal government to spend less on health care say this is not the right approach.

“I don’t think there was an intention to disrupt care or move it into a more expensive setting,” said Cathy Schoen, senior vice president of the Commonwealth Fund, which recently released a plan for cutting $2 trillion in health spending. “If that’s the case, we’re being penny-wise and a pound-foolish with these cuts.” Legislators meant to partially shield Medicare from the automatic budget cuts triggered by the sequester, limiting the program to a 2 percent reduction — a fraction of the cuts seen by other federal programs.

But oncologists say the cut is unexpectedly damaging for cancer patients because of the way those treatments are covered. Medications for seniors are usually covered under the optional Medicare Part D, which includes private insurance. But because cancer drugs must be administered by a physician, they are among a handful of pharmaceuticals paid for by Part B, which covers doctor visits and is subject to the sequester cut. The federal government typically pays community oncologists for the average sales price of a chemotherapy drug, plus 6 percent to cover the cost of storing and administering the medication. Since oncologists cannot change the drug prices, they argue that the entire 2 percent cut will have to come out of that 6 percent overhead. That would make it more akin to a double-digit pay cut.

“If you get cut on the service side, you can either absorb it or make do with fewer nurses,” said Ted Okon, director of the Community Oncology Alliance, which advocates for hundreds of cancer clinics nationwide. “This is a drug that we’re purchasing. The costs don’t change and you can’t do without it. There isn’t really wiggle room.” Okon’s group has sent letters to legislators urging them to exempt cancer drugs from the sequester or, as a back-up, only shave 2 percent off the money they receive to administer the medications.

--snip--

Robbing Peter to pay Paul is acceptable governmental math.

OBama playing hardball using people's lives as collateral.