Home Medicine A ‘SAD’ Story: Patient Stuck With $176K Bill After Medicare Policy Switch

A ‘SAD’ Story: Patient Stuck With $176K Bill After Medicare Policy Switch

by Universalwellnesssystems

For five years, retiree George Beitzel went to a Sacramento-area clinic every two months to have a nurse inject him with ustekinumab (Stelara), an expensive drug prescribed by his doctor for Crohn’s disease.

Having the shots administered by a licensed professional was especially important to Beitzel, now 84, who suffers from Parkinson’s disease.

It made it impossible to safely inject him because he was “shaking like a bug,” Weitzel said. today’s med page.

Even though Stelara is one of the most expensive drugs on the market, costing more than $40,000 per dose, Medicare does not charge him under Part B, which covers drugs provided by clinics and clinics. I always paid for the injections. His copays were covered by a supplemental plan, so he “didn’t have to pay anything,” he said.

But that all changed on October 15, 2021, unbeknownst to Beitzel and the clinic, which continued his injections for another seven months.It’s a class action lawsuit lawsuit The lawsuit was filed last week by the nonprofit Center for Medicare Advocacy (CMA) on behalf of Beitzel and another patient against Health and Human Services Secretary Xavier Becerra in the U.S. District Court for the Eastern District of California.

CMA Litigation Director Alice Barth said what CMS quietly and suddenly did that day was change its payment policy for Stelara. Based on Medicare claims data, whose use for this purpose is controversial, and because more than 50% of Stelara users inject themselves with this drug, we have decided to reclassify this drug as did.SAD, or self-administered drugsapplies to everyone and is no longer covered if administered in an outpatient setting.

I didn’t know it at the time, but every shot I received at a clinic after Oct. 15 would cost $43,543.47, or $176,000. Medicare told him as much in numerous letters denying his appeals.

“Some of the denial letters said that Mr. Beitzel should have known that Stelara was not covered, because you can read that in the 2021 Medicare & You Handbook. Because we could,” Barth said.

“It’s ridiculous and adds insult to injury,” she said. Not only was there no mention of Stelara in the more than 100-page handbook published in fall 2020, she said. There was buried, vague language that didn’t tell him that Medicare would reclassify the drug in a year’s time: “Part B includes other types used in hospital outpatient settings.” (sometimes called “self-administered drugs” or drugs you take) are not covered. (Usually you take care of it yourself).

A CMS spokesperson said CMS does not comment on pending litigation.

Beitzel turned to his co-counsel in the case, Melissa Brown, an attorney at McGeorge Law School’s Elder Law Clinic in Sacramento, for help.

Barth said their request for injunctive relief was a last-ditch effort on the part of the Weitzels in a year-long paperwork and stressful battle against Medicare’s multi-layered and complex appeals process, a process that has been frustrating and confusing. Mr Barth said there had been conflicting decisions. .

Currently, to cover SAD drugs, Medicare beneficiaries, including those with frailty, movement disorders, and seizure disorders, must obtain their drugs from Part D drug plan pharmacies; most If you want to cover expensive medical treatments like , you will need to pay a large amount out of pocket. After all, it’s Stellara. Then you must either administer the injection yourself or find someone qualified to do so safely. Otherwise, Stelara and her other SAD medications are not eligible for outpatient benefits.

Stelara, which was used by 22,000 beneficiaries in the year ending May 2023, was very expensive, costing the Medicare program about $2.7 billion over that period. This is one of ten medicines. Designated In August, the two countries will begin negotiations based on the Biden administration’s inflation control law.

Starting in May 2022, Beitzel stopped going to the clinic for injections. He pays his $1,390 cost share to the drug plan for each dose of Stelara and has a friend, a retired health care provider, administer the shots.

Perhaps just as hard to understand, the regulations do not require beneficiaries to be notified in advance that their drug is no longer covered by Part B, leaving only patients to know about the change, officials said. This is what Barth said. A few months later, a shocking bill arrived in the mail.

And because he didn’t know and the clinic didn’t know or didn’t understand, Beitzel continued to administer four injections at the clinic in October and December of 2021 and February and April of 2022 after the policy change. continued to receive.

Beitzel first learned something might be wrong when she received her Medicare Summary Notice (MSN) dated March 1. It said the October and December doses were “not covered” and could be charged $43,543,47 each. The reason was not mentioned.

“I almost fell over because I’ve been doing this for five years and it didn’t cost me anything and no one told me anything,” Beitzel said. today’s med page This was revealed in a phone call with the center’s lawyer. He said he was told by the infusion center’s billing department that it was a “documentary error” and not to worry.

A few months later, on June 10th, we received another disavowal from MSN. It said he would be required to pay an additional $89,438.28 for the third and fourth doses. The infusion center’s appeal was rejected, but it was the first to state its reasons, saying, “It has been determined that the above-mentioned services are considered self-administered medicines, and therefore… cannot be paid for.”

“I’m still in pain and stress,” Beitzel said. today’s med page He mentioned that papers related to his case were stacked up to a foot high. “Stress is not good when you have Crohn’s disease. Every time I read this article I get angry.”

The class action lawsuit also names another plaintiff as KK. The man is a 72-year-old psoriasis patient from Darien, Conn., who has a rare form of painful arthritis that damages the bones in his hands and feet. Since 2016, she has also been receiving Stelara injections every three months, all covered by Medicare Part B. That means she has until October 15, 2021, when her local Connecticut Medicare Administrative Contractor (MAC) similarly changed its policy.

Like Beitzel, she was not informed of the changes and continued receiving injections at a nearby hospital’s outpatient clinic.

Now, in a notice she received a few months later, Medicare says she owes more than $116,000 for two doses. She appealed, but during one appeal proceeding, an administrative law judge told her verbally that she was not responsible for her payments. But the ruling overturned the judge’s decision, saying, “She cannot ignore Medicare’s policies and guidance.”

“Ms. K. is distressed by the termination of her Part B coverage for Stelara without notice and by Medicare’s decision to find her financially responsible for the cost of the injections she received at the hospital,” the complaint states. I experienced, and continue to feel, feelings of anxiety, anger, and anger.” . ”

The complaint says she had to stop taking the drug because the Part D plan was so expensive. She suffered from pain that was “like third-degree burns” and a severe rash that “covered about 50% of her body and was itching and not going away.” She is now restarting her medication through the manufacturer.

The lawsuit asks the court to certify the case as a class action lawsuit and to issue a permanent injunction requiring Becerra to ensure notification if the drug’s status changes to self-administer. I’m also looking for Waives patient responsibility for costs. And modify the program to allow people with medical conditions that prevent them from injecting themselves to get the shots from a health care professional.

Barth said the lawsuit affects not only those taking Stelara, but also the thousands of others who can and are similarly incurring exorbitant amounts of debt due to unforeseen SAD drug policies. He said he was brought on behalf of Medicare beneficiaries.

Medicare policyholders added three rheumatology drugs to the SAD list 10 years ago, also without notice, due to efforts by the American College of Rheumatology. persuaded The complaint says it is asking for Part B to be reinstated. However, as of August, two of the three drugs, Simponi and Orencia, have returned to the list.

The lawsuit also notes that MACs in several regions have proposed SAD modification decisions for other drugs covered by Part B, such as tezepelumab Echo (Tezspire), an injectable biologic drug for psoriasis. It also mentions.but effort By the American College of Allergy, Asthma, and Immunology. thwarted that.

Barth said that after reviewing 12 regional MAC decisions regarding Stelara, they currently consistently classify Stelara as a SAD drug, but there appears to be conflicting reasons as to why.

To Beitzel, the Medicare agency’s actions are not only harmful and heartless, but dangerous.

“I kept getting letters from Medicare that I didn’t understand. It’s like a big bureaucracy is stepping on this little hand,” Beitzel said. Today’s Medpage.

Beitzel said she would ask a Medicare representative if she could get the shot if she had the chance. “He’ll see me with his hands shaking and say, ‘No, I’m not going to give you an injection.'” He wants him to be closer to me. ”

  • Cheryl Clark has been a medical and science journalist for over 30 years.

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