AMA head: Cuts ‘fatal’ to cancer centers
Tax bill would hit treatment clinics
Barbara McAneny, president-elect of the American Medical Association and a New Mexico-based oncologist, has said Medicare cuts that would be triggered automatically by Congress’ tax overhaul bill would be ‘fatal’ for community cancer centers.
“Patients will have to change where they get care, it will be more expensive and they will have no choice in the matter,” said McAneny, a founding partner of the New Mexico Cancer Center, which has locations in Albuquerque and Gallup.
At issue is the $1 trillion projected deficit over the next decade at the heart of the Senate tax reform bill approved this month, which could trigger $25 billion or more in Medicare cuts through the process known as sequestration. Both Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan have pledged to prevent the cuts, but the House and Senate are still drafting the final version of the bill.
Should the cuts be triggered, McAneny said community cancer centers will be threatened because of the high cost of caring for cancer patients, many of whom are insured by Medicare. The problem will be particularly acute in rural areas and states like New Mexico, where patient populations often don’t include enough individuals with non-Medicare insurance to help cover the cost of those who do, she said.
“It’s not just about the cost of the drugs, it’s about the cost of storing the drugs, preparing them and delivering them to the patient,” said McAneny.
“All these practices are going to have to seriously consider the viability of going forward.”
Cancer patients would also likely see their health care costs rise if they have to receive their treatment at a hospital. The cost of cancer treatment at a hospital is about twice as expensive as treatment at a community cancer center, said McAneny.
According to the Community Oncology Alliance, an advocacy group for independent practices, existing Medicare cuts over the past few years have already resulted in the shuttering of 91 community cancer treatment centers across the country.
“People are panicking,” said Ted Okon, the alliance’s executive director.
McAneny said while hospital-based cancer treatment centers would also be affected by the cuts, those operations benefit from a pricing program that allows certain institutions to buy drugs from manufacturers at a discount while still getting certain Medicare reimbursements.
The program, known as 340B, is scheduled to be dramatically reduced on Jan. 1, but McAneny said it will still provide a source of funding for hospitals that community cancer centers don’t receive.