Reforming Medicare’s Payment System

Three-dimensional radiation costs roughly $10,000. A somewhat newer treatment, I.M.R.T., initially cost $42,000. And an even more recent treatment, proton radiation therapy, costs $50,000. The newer treatments do not seem to be more effective at keeping patients alive than three-dimensional radiation, so under the proposal all three treatments would be reimbursed (after the three-year trial period for the new ones) at $10,000.

Despite some of its downsides, this is a good idea — and precisely the type of shift in our reimbursement system than needs to happen if we are to reduce cost growth over time.

From Reforming Medicare’s Payment System –

Orszag’s plan makes sense but the health care industry is going to fight anything that will reduce the use of expensive therapy and medications.