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WASHINGTON — The Trump administration on Monday offered a new critique of the way Medicare pays for drugs administered by doctors, hinting at potential changes that could draw broad ire from drug makers, hospitals, and doctors.

Centers for Medicare and Medicaid Services Administrator Seema Verma said the payment structure for Medicare Part B, which covers chemotherapy treatments and other physician-administered drugs, “creates a perverse incentive for manufacturers to set higher prices, and for providers to pick drugs that are more expensive.”


Right now under Part B, doctors and hospitals are reimbursed for the drugs they used based on its average sales price, plus a 6 percent add-on fee meant to cover the cost of administering the drug.

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