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CMS Proposes Lifting CAP’s Ban On Physicians Transporting Part B Drugs

Executive Summary

CMS is proposing to do away with its restriction against physicians transporting from one location to another the drug products obtained through Medicare Part B's competitive acquisition program

CMS is proposing to do away with its restriction against physicians transporting from one location to another the drug products obtained through Medicare Part B's competitive acquisition program.

The agency suggests the change in its proposed Physician Fee Schedule rule for 2009, slated for July 7 publication in the Federal Register. The requirement for physicians to administer drugs at the site of vendor delivery has been in effect since CAP went into operation in mid-2006.

Many physicians believe that they would have more flexibility in treating patients, especially in rural satellite offices, if they were able to move medications among different practice locations. The change also could result in more flexibility for patients' appointment scheduling, CMS says.

On the other hand, potential CAP vendors have said that, because vendors retain ownership of drugs until administered to the patient, they could be liable for any drug damaged due to improper handling and administered in a substandard condition.

Having collected comments through previous PFS proposed rules, CMS now would like to permit moving drugs between practice sites "subject to voluntary agreements between the approved CAP vendor and the participating CAP physician."

There would be no requirement for CAP vendors to offer or physicians to accept such agreements and a vendor could not refuse to do business with a physician who declines an agreement. Each vendor would choose which drugs could be transported.

The agreements would need to be in writing, with provisions to prevent diversion and protect product integrity, stability and sterility during transport.

Set up to help physicians avoid the burden of purchasing and billing for drugs and bring savings to Medicare, CAP got off to a slow start with both potential vendors and physicians. In February, CMS said the program had 2,800 physicians enrolled, but a special enrollment period that ended that month seems to have provided boost: the agency now puts the number at 4,200.

CAP has only one approved vendor, BioScrip. CMS recently completed a bidding period for vendor contracts covering 2009 to 2011. CMS has not disclosed how many bids it received, although BioScrip and McKesson are known to be among the bidders (1 (Also see "BioScrip, McKesson Among Bidders For Next Medicare Part B CAP Contract" - Pink Sheet, 18 Feb, 2008.), p. 18).

- Scott Steinke ([email protected])

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