Published on October 3, 2009 at 1:18 AM
A change in the reimbursement rate for the drug
Avastin, used off-label to treat an eye illness in the elderly, could lead Medicare doctors to use a much costlier drug that would cost the system millions,
The New York Times reports.
"For several years, eye doctors have been using Avastin off-label as a treatment for retinal diseases, particularly
age-related macular degeneration, the leading cause of blindness in the elderly." The
cancer drug is similar to
Lucentis — which costs $2,000 an injection — but costs only $30-$50 per shot when used for the eye illness.
The reimbursement for Avastin, however, dropped to $7.20 Thursday, which could make it more attractive for doctors to administer the much more expensive Lucentis instead. According to the Times, "Medicare apparently calculated the reimbursement rate for the tiny eye doses based on the average sales price of Avastin for cancer. But it did not take into account the markup charged to eye doctors by compounding pharmacies — the chemists that divide up the Avastin into tiny doses under sterile conditions," (Pollack, 10/1).