The logic of the sequester

The sequester legislation directed that the fees paid to cancer clinics for chemotherapy drugs be cut by 2%.  A small amount that will cost the clinics the profit they had been making on these drugs, which at 6% was not great.  So, some clinics will stop seeing these patients, who will then have to go to hospitals for chemo, which will result in the government paying an average of $6,500 more annually than for chemo delivered in a community clinic.  Furthermore, Medicare patients will wind up spending $650 more in out-of-pocket costs when they lose access to clinics. 

This must make sense to someone.  I don't understand it.