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CMS Extends Form Deadline

The Centers for Medicare and Medicaid Services has extended the deadline for filing Medicare claims using its new version of claims form CMS-1500, because of formatting errors on the revised form, CMS announced. The original deadline for switching to the new form, known as CMS-1500 (08–05) originally was April 2. But CMS said last month that contractors have been directed to continue to accept the old form until the agency notifies them to stop. In addition, the agency advised physicians who must use the form to use legacy provider numbers as the form cannot accommodate a National Provider Identification (NPI) number.

Oncologist Shortfall Predicted

The United States will have a shortage of 2,550–4,080 oncologists by 2020—roughly one-quarter to one-third of the 2005 supply—as the demand for services increases by 48%, according to a report by the American Society of Clinical Oncology. Meanwhile, the supply of services provided by oncologists is expected to grow by just 14% by 2020, leading to a shortage representing up to 15 million visits per year. Options to fill the shortfall include redesigning service delivery, increasing fellowship positions and the use of nonphysician clinicians, and having primary care physicians provide more care for patients in remission. The report on the final results of the ASCO Oncology Workforce Study based its conclusions on the current age distribution and practice patterns of oncologists and the number of oncology fellowship positions.

Prescription Drug Sales Up

U.S. prescription drug sales grew more than 8% to $275 billion in 2006, fueled by the Medicare Part D prescription benefit, increased utilization of generics within new therapy classes, and new drug launches, said pharmaceutical data firm IMS Health. Total dispensed prescriptions grew at nearly a 5% pace, compared with slightly more than 3% in 2005, the firm said. Part D was a large driver of the upward trend, lifting prescription volume by an estimated 1 to 2 percentage points and pharmaceutical sales by about 1 percentage point. The benefit “increased prescription coverage to the previously uninsured and underinsured, and provided generous plan benefits to seniors,” said Diana Conmy, corporate director, IMS Market Insights, in a statement. Meanwhile, drug makers released new generic forms of lipid regulators, antidepressants, and inhaled steroids, resulting in significant growth for those classes of medications. Sales of prescription drugs in the United States are expected to decline in 2007, IMS Health said.

Veterans Bill Introduced

Veterans with service-connected disabilities would be able to go to the hospital or medical clinic of their choice under legislation introduced by Sen. Larry Craig (R-Idaho). The senator said he was concerned about the care lapses documented at Walter Reed Hospital in Washington, but said that he was willing to pit the health care system run by the U.S. Department of Veterans Affairs against private sector providers because he considered the VA system among the best in the nation. “This bill is about my confidence in the VA,” Sen. Craig said in a statement. “Let's see where veterans choose to go. It's very simple: If service-connected veterans leave in droves, we've learned something. But, if veterans overwhelmingly stay, and I think they will, we've also learned something.”

Medical Debt Increasing

Families are turning to credit cards to pay for medical care as health care costs continue to rise faster than incomes, according to new research by public policy advocacy groups Demos and the Access Project. The groups found that 29% of low- and middle-income households with credit card debt reported that medical expenses contributed to their current balances, and within that group, 69% had a major medical expense in the previous 3 years. Low- and middle-income medically indebted households had, on average, 46% higher levels of credit card debt than those without medical debt. In addition, the medically indebted were almost twice as likely to be called by bill collectors than were the nonmedically indebted. “Congress should address this new and serious consequence of our nation's growing health care crisis before more families go into debt, and risk their financial stability, to get the medical care they need,” said report coauthor Cindy Zeldin of Demos in a statement.

Drug Executives Admit Fraud

Four executives from the bankrupt generic drug maker Able Laboratories Inc., pleaded guilty in March to roles in a 7-year scheme to falsify data at the company, which had made 46 generic versions of brand-name, mostly prescription drugs for pain, inflammation, obesity, and cardiovascular conditions. The highest ranking official of the four, Shashikant Shah, vice president for quality control and regulatory affairs, also pleaded guilty to a securities fraud charge. The Food and Drug Administration has said that the company, based in Cranbury, N.J., invented data so its drugs would appear to meet federal standards when in fact they had too much or too little of their active ingredients. This occurred 41 times dating back to 2001, while on nine other occasions, Able failed to issue alerts about impure drugs. Able, which recalled all of its prescription products in May 2005 as part of an agreement with the FDA, filed for bankruptcy protection in July 2005 and liquidated its assets in March 2006.

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