Mark McClellan

The Centers for Medicaid and Medicare Services (CMS) announced this morning that the premium for participants in the new prescription drug benefit for Medicare will be significantly lower than expected. Officials said those signing up for the plan can expect to pay about $32.20 per month, about 15 percent less than earlier estimates. That will "make the benefit more attractive to more people," said CMS administrator Mark McClellan.

The decision is likely to be seen by critics as a …

The latest signs appear to suggest that Medicare Part D may have trouble attracting participants, a possibly ominous sign for the much vaunted program. Evidence seems to suggest that many seniors who could be helped by the program have not heard about it. Others appear to be confused about what the benefit will mean. Economists warn that if the program is not able to attract large numbers of participants, it will have difficulty funding coverage for those requiring expensive drugs and …

The federal moratorium on the construction of new physician-operated specialty hospitals expires today. An extension authorized by Centers for Medicare and Medicaid chief Mark McClellan today keeps the ban in place for another six months. Congress enacted the moratorium in 2002 in response to claims from the hospital industry that the specialty facilities represent unfair competition.

The American Medical Association issued a statement in support of specialty hospitals this …

In news for both specialty hospitals and the broader industry as a whole, CMS administrator Mark McClellan said yesterday that the government will alter the way it pays hospitals to encourage them to treat the sickest patients. McClellan said Medicare reimbursements will be fine-tuned in the near future, with payments going down for illnesses judged by the agency to be less serious, such as a cardiac care. That move would directly impact specialty providers who allegedly benefit from …