US CMS suspends Part B CAP for Rx drugs

The US Centers for Medicare and Medicaid Services (CMS) has announced the suspension, from January 2009, of the Part B Competitive Acquisition Program. The scheme was introduced in 2006 under Section 303(d) of the 2003 Medicare Modernization Act, which also includes the Part D prescription drug benefit for seniors (Marketletters passim). The CMS cited "contractual issues" with successful bidders for the postponement. Under the CAP, 4,200 physicians obtain drugs via a third party which handles Medicare billing and co-payment collection from patients.