Medicare Heavily Overpaid For Infusion Drugs, Report Says

Law360, New York (February 20, 2013, 7:23 PM EST) -- The U.S. Department of Health and Human Services Office of Inspector General on Wednesday said the agency’s mandated Medicare Part B payment policy for infusion drugs had resulted in massive overpayments, urging the agency to push for legislative change or open up the drugs to competitive bidding.

According to the OIG’s report, HHS’ statutorily required policy of paying 95 percent of the October 2003 average wholesale prices, or AWP, for infusion drugs — intravenous drugs delivered via durable medical equipment, or DME, equipment such as a...
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