UPDATE 1-US Medicare agency sets meeting on Dendreon vaccine

* Advisory panel to review Provenge data Nov. 17

* Agency will use input to help decide payment policy

* Final decision won't be based on cost-CMS.

WASHINGTON, Aug 31 (Reuters) - The U.S. agency that runs the Medicare health insurance program scheduled a Nov. 17 advisory panel meeting on Tuesday to review data on Dendreon Corp's (DNDN.O) novel treatment for advanced prostate cancer.

The Centers for Medicare & Medicaid Services (CMS) said in June that it was considering a nationwide coverage policy for Provenge, a vaccine that stimulates the body's immune system to fight prostate cancer.

Nationwide Medicare coverage can help boost a product's success, while a denial can sharply dent sales. Medicare is the federal health insurance that covers about 45 million elderly and disabled Americans.

The $93,000 price tag to treat a patient with Provenge has drawn attention, and some investors and patient advocates worry Medicare will limit use to save money. The agency has said the decision will not be based on cost.

The advisory panel that meets in November will provide input for CMS to consider in making the final decision.

(Reporting by Lisa Richwine, editing by Leslie Gevirtz)