Medicare and Drug Pricing

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Abstract
In this report, Iglehart describes the debate about Medicare's overpayment to physicians for drugs administered to patients in the outpatient setting, such as chemotherapeutic agents. Oncologists acknowledge that they purchase drugs at prices that are lower than the reimbursement they receive from Medicare, but they argue that they are underpaid for their professional services and practice expenses. Faced with a delicate balancing act, policymakers must weigh the interests of Medicare beneficiaries, physicians, and the public as they work to reform the way in which Medicare pays for drugs.

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