March 2006 Practice Update

President Signs Legislation to Freeze Physician Medicare Payments at 2005 Levels, Cuts Still Expected in 2007
In February, President Bush signed into law the Deficit Reduction Act which freezes Medicare physician payment at 2005 levels. The legislation averted a scheduled 4.4 percent cut to physician payments. Cuts are still expected in 2007 and subsequent years unless Congress takes additional action in 2006. This will be a focus of the Committee on Practice Capitol Hill Day. Click here for more information.

CMS Offers Recommendations for Hematologists/Oncologists on Prescriptions for Part B and D Drugs
CMS recommends including in the written prescription the diagnosis and the status as a “Part B”or “Part D” drug. Click recommendations for more details, including the list of drugs.

Flawed Calculations Lead to Incorrect Medicare Payments Under ASP Methodology
The Health and Humans Services Office of Inspector General released a report on March 2 that included findings that Medicare overpays for approximately 46 percent of codes of Part B drugs under the Average Sales Price (ASP) methodology and underpays for approximately 13 percent of others.

Quality Merger
The National Quality Forum (NQF) and the National Committee on Quality Health Care (NCQHC) merged into a single organization, the National Quality Forum (NQF). The former CEO and president of NCQHC became the CEO and president of the new NQF.

MedPAC Report Released
The Medicare Payment Advisory Commission released their March report. Highlights include recommendations for a new panel to identify overvalued Medicare codes and a 2.8 percent Medicare payment increase for 2007.

2006 Oncology Demonstration Billing Correction
Medicare released a correction regarding claims information for the current oncology demonstration.

ASH Comments on Medicare Practice Expense Methodology
Medicare is exploring options for improving the calculation of practice expense for physician reimbursement. ASH submitted comments in response to Medicare’s request for feedback.

Medicare Announces Sites of Cancer Care Disparities Reduction Demonstrations
On March 24, Medicare announced the sites for six demonstration projects related to improving early detection and treatment of cancer among Medicare minorities. Sites are located in MT, HI, UT, TX, MI, MD, and NJ.

Anticoagulation Monitoring Services
Surveys were collected regarding evaluation and management of anticoagulation monitoring. Thanks to all participating hematologists for extending their time and expertise to ensure the specialty’s perspective was included.

Spring Meeting and Capitol Hill Day
The Spring Meeting and Capitol Hill Day for the Committee on Practice is scheduled in Washington, DC on April 24 and 25, 2006. More information, such as meeting notebooks, will be available shortly.

If you have questions, or need more information about the items above, please contact ASH Practice Advocacy Manager Pamela Ferraro by e-mail or call 202-776-0544.