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Our declining to attach accounting significance to the bills
is supported by Federal Medicare statutes and regulations. As
stipulated by the parties, the chemotherapy treatments and drugs
at issue are covered by Medicare. Medicare covers only medical
"services" and does not cover prescription drugs that can be
self-administered. See 42 C.F.R. sec. 410.29 (1998).5 In
creating legislative coverage for medical services, Congress was
astutely aware that health care providers may need to use
supplies or administer drugs incident to and as an integral part
of their services. As pertinent, the Health Insurance for Aged
Act, Pub. L. 89-97, sec. 1861, 79 Stat. 291, 321 (1965), 42
U.S.C. sec. 1395x(s) (1994), provides as follows:
The term "medical and other health services" means
any of the following items or services:
(1) physicians' services;
(2)(A) services and supplies (including drugs
and biologicals which cannot, as determined
in accordance with regulations, be self-
administered) furnished as an incident to a
physician's professional service, of kinds
which are commonly furnished in physicians'
offices and are commonly either rendered
without charge or included in the physicians'
bills.
5 This is true for the fee-for-service statutory coverage
under Medicare. The Secretary of Health and Human Services may
contract with private insurers (health maintenance organizations)
to provide benefits to beneficiaries under Medicare. See Health
Insurance for Aged Act, Pub. L. 89-97, 79 Stat. 291 (1965), 42
U.S.C. sec. 1395mm (1994). The beneficiaries that opt for
coverage under a health maintenance organization plan may have
prescription drug coverage under their contract with the insurer.
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