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February 19, 2021

Oncologists Lose Appeal Over Medicare Part B Cancer Drugs Pay Cuts

On February 16, a federal appeals court in Washington denied review of a challenge by oncologists regarding an automatic 2% reimbursement cut for Medicare Part B covered drugs. The cuts arise from special rules under President Obama’s Balanced Budget and Emergency Deficit Control Act and will remain in place through 2030.

Claimants argued that the pay cuts do not apply to cancer drugs, and that its members should be reimbursed in full. However, the federal court dismissed the case of lack of subject matter jurisdiction, which was affirmed by the D.C. Circuit court. The courts’ decision was based upon the fact that the Medicare Act expressly strips federal courts of subject matter jurisdiction over any claims arising under the law. Claims arising under the Medicare Act may only be reviewed by a court after the U.S. Secretary of HHS issues a final decision on the matter.