ALEXANDRIA, Va.--Nearly half of home care pharmacies will stop providing inhalation drug therapy for seniors if the Medicare dispensing fee is cut significantly, according to a survey commissioned by the American Association for Homecare.

Out of 82 home care pharmacies surveyed, 44 percent said they would stop providing the drugs if there is a substantial cut to the fee, currently set at $57 for a 30-day supply. Another 50 percent said they would curtail services to Medicare beneficiaries; 3 percent said they would ask beneficiaries to pay for services; and 3 percent said they would go out of business altogether as a result of a substantial cut.

The pharmacies provide inhalation drugs to more than half of all Medicare beneficiaries who use the therapy, according to AAHomecare.

After CMS said in August that its 2006 dispensing fee would likely be lowered, the association commissioned Muse and Associates, a Washington-based research firm, to conduct the survey during August and September.

Survey participants reported that their actual dispensing costs for providing the inhalation drugs are higher than CMS' current fee, totaling $66.55 for a 30-day supply and $138.80 for a 90-day supply.

Last week, a report from the HHS Office of Inspector General, called "Review of Services Provided by Inhalation Drug Suppliers," concluded that only a limited number of services are provided to beneficiaries under the dispensing fee. But AAHomecare countered that the report has "serious flaws," noting that it didn't include pharmacy, order processing, packaging and shipping, delivery, billing or any administrative costs related to dispensing the drugs.