tci Medicare Compliance & Reimbursement - 2007 Issue 31

COMPLIANCE: OIG Wants To Squeeze Your Drug Payments Further

Doxorubic and Interferon are at the top of the hit list.Warning: Your already low payments for Part B drugs could wind up slashed even further, if the HHS Office of Inspector General (OIG) gets its way.  The OIG has been beating a drum on Part B drug payments for years, even after Medicare switched to a lowball system based on 106 percent of the Average Sales Price (ASP), or the manufacturer's regular price. In its latest report (OEI-03-07-00140), the OIG compared that amount with the amount wholesalers--who buy in bulk--pay for the drugs.Not surprisingly, the...

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