Specter-Brown file key amendment today to correct reimbursement issue impacting physician-administered drugs

This afternoon, Senators Specter (D-PA) and Brown (D-OH) filed an amendment to the Senate health reform bill that would exclude from the calculation of average sales price (ASP) prompt pay discounts extended to wholesalers up to 2% of wholesale acquisition cost (WAC) for a period of five years. This language is similar to language that was approved in the House Energy and Commerce Committee, but was not included in the final House bill.

This technical modification is essential to accurate and consistent reporting of ASP. This change would correct Medicare reimbursement to physicians and hospital outpatient centers to be consistent across products. This issue is critical to products that must be professionally administered including treatments for cancer, rheumatoid arthritis, and multiple sclerosis.

Physicians, hospitals and patient advocacy organizations should urge their Senators to ask Senator Reid to include the prompt pay amendment in the Senate health reform legislation.

With the potential growth of Medicare this issue takes on added urgency. The proposed language would also be consistent with similar language within Medicaid.