September 24, 2007

CMS to Keep EPO Payment Limits?

Newark Star-Ledger journalist Ed Silverman over at the Pharmalot blog reports that a brokerage house has gotten its hands on a letter written by the Center for Medicare and Medicaid Services that signals its intent to reject pressure to return to paying for excessive EPO use in chemotherapy patients. The issue is being pushed by lobbyists for Amgen and J&J, which manufacture Aranesp and Procrit, respectively. The drugs raise red blood cell counts in cancer patients.

Background: Clinical trials released last year showed that the drug used to excess actually made tumors grow faster. After an FDA advisory committee last spring issued a strong warning against excessive use of the drugs, CMS scaled back its payment policy. Amgen and J&J immediately launched a massive lobbying blitz. The American Society of Clinical Oncology issued a statement supporting higher use of the drugs. They even got the full Senate to pass a resolution supporting the companies.

So, has that campaign officially come to naught? Reuters is also reporting that CMS is demanding more evidence from physician groups like ASCO to justify a change in policy. A quick search of the CMS website turned up nothing. Let's hope that the stock analyst (and Ed), who broke the story, have it right.

Posted by gooznews at September 24, 2007 09:49 PM
Comments

Why is ASCO pushing this? I thought Medicare took the profit out of reselling drugs. If Amgen or J&J are offering discounts from the "average sales price" that Medicare bases its reimbursement on, then they're undermining the purpose of the new law, which was to give physicians only a slight (6 percent) markup over the price they pay for the drugs.

Posted by: Mark at September 25, 2007 12:08 PM