WASHINGTON — Congress will not move forward with a controversial policy to equalize certain Medicare payments to hospitals and physicians’ offices in an upcoming government funding package, five lobbyists and sources following the talks told STAT.
The delay is a win for hospitals, which have adamantly lobbied against the policy. It would have seen Medicare paying one price to doctors who administered drugs, whether they did so in an office or at a hospital, rather than paying more in the latter scenario. A House-passed version of so-called “site-neutral” payments would have saved the federal government billions of dollars. But Senate Republicans have voiced concerns about how such a policy could impact rural hospitals in their districts.
Lawmakers are this week negotiating a package to fund the government, as well as renewing expiring health programs to fund safety-net hospitals, community health centers, and public health programs. However, key policy priorities including site-neutral payments and reform to pharmacy benefit managers’ practices are falling by the wayside as the talks progress.