News & Updates

December 6, 2023

New Research Dives into Site Neutral Cost Savings in the Lower Cost, More Transparency Act

A new research brief from the Actuarial Research Corporation and supported by Arnold Ventures provides a deep dive into the potential cost impacts of site neutral payments for off-campus drug administration services in Medicare.

Per Arnold Ventures, the analysis estimates “if site neutral payments for drug administration in off-campus facilities had been in place in 2021:

  • “Total fee-for-service Medicare costs would have been $161 million lower.
  • Beneficiary cost sharing would have been $40 million lower.
  • Medicare patients receiving level 4 drug administration would have paid $40 less per service, keeping in mind many patients receive multiple drug administration services over a course of treatment.
  • Chemotherapy patients would have paid $292 less in cost sharing. And the highest-need chemotherapy patients would have paid more than $1,000 less.”

“The brief also found:

  • “68% of drug administration services are performed in a physician’s office, meaning it is safely provided in a doctor’s office a majority of the time.
  • Medicare pays 200 – 300% more when drug administration services are provided in an off-campus hospital outpatient department rather than in a physician office.”

Read more from Arnold Ventures here.

Read the full ARC research brief here.