Perspective               

Drastic Cuts in Medicare Payment for Outpatient Services Proposed

The Bush administration has proposed drastic cuts in Medicare payments for many outpatient services. Examples of the services that would be affected include covered cancer drugs and blood products given to people who need outpatient transfusions. Also affected would be high-technology procedures and devices, such as the cardiac defibrillator implanted in Vice President Cheney.

Provider and consumer advocates alike are concerned that hospitals will stop providing the services on which they lose money. Older and disabled Americans with Medicare would then be confronted with serious issues when attempting to access life-saving care.

After considering public comments on the proposal, the government will finalize the ruling. The new outpatient services payment rates will be effective January 1, 2003.

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