tci Medicare Compliance & Reimbursement - 2003 Issue 7

Advisory Opinions: OIG NIXES COPAY SUBSIDY

Drugmakers can’t use Medicare to subsidize patient assistance programs for financially needy beneficiaries, the HHS Office of Inspector General reaffirmed in an advisory opinion released Feb. 12 (No. 03-3). In the opinion, the OIG considers a pharmaceutical manufacturer’s proposal to modify its existing PAP to pay Medicare Part B cost-sharing amounts for needy patients who use its post-organ transplant immunosuppressive products. A key problem with the plan, the watchdog agency says, is that while it takes patients off the hook financially, it still leaves Medicare with the obligation to pay its share for the drugs. In concluding...

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