HHS OIG Report Finds Part D Private Insurers Overcharged for Billions, Lack of CMS Oversight
Filed under: CMS, Drug Pricing, Drugs & Medical Devices, HHS
Christopher Crumpet's Playmate (1955 UPA), Courtesy of Cartoonmoderntumblr.com
According to a recent report by the Department of Health & Human Services, Office of Inspector General, private insurance companies that operate plans under the Medicare prescription drug benefit have overcharged Medicare beneficiaries and the program by several billion dollars since the program began in 2006.
According to the report, 80% of health insurers that operate plans under the Medicare prescription drug benefit overcharged the program by about $4.4 billion in 2006 alone. In addition, The McClatchy/Raleigh News & Observer reports that the Centers for Medicare & Medicaid Services (CMS) remains unaware of the total impact of the practice because of its failure to perform required audits.
Bill Would Require Transparency of Physician Relationships with Pharma, Medical Device Companies
Filed under: Drugs & Medical Devices, HHS, Transparency
Yesterday Sens. Chuck Grassley (R-Iowa) and Herb Kohl (D-Wis.) announced a bill (S 301) that would require pharmaceutical and medical device companies to publicly disclose any gifts and payments to physicians valued at $100 or more per calendar year, according to CQ Healthbeat.
The bill introduced yesterday requires companies to report such gifts and payments to the U.S. Department of Health & Human Services once per year. Similar legislation introduced last year would have required quarterly disclosure of gifts or payments over $25 per year.
Additionally, if passed, the legislation would pre-empt state laws that require disclosure of gifts and payments to physicians.
So far, the bill has gathered support from various sectors. Proponents of the bill argue that it will allow patients to “fully trust the relationship they have with their doctor.”
Representatives of the pharmaceutical and medical device industry have expressed support for a “uniform national standard . . . [as opposed to] a patchwork approach by all 50 states.”
It seems that the only group unlikely to support the proposed legislation is physicians. However, the bill allows for physicians to contest the reports made by pharmaceutical and medical device companies, which would be reviewed by Health & Human Services.
It’s Official, Tom Daschle Nominated to Head HHS and New White House Office of Reform
In a press conference, President-elect Obama announced his choice of former Senate Majority Leader Tom Daschle to head both Health and Human Services (HHS) and the new White House Office of Health Reform. “As such he will be responsible not just for implementing our health care plan. He will also be the lead architect of that plan,” Obama said. Jeanne Lambrew was picked to serve as deputy director of the White House office. She served as a health and economics adviser during the Clinton administration. Read full story here.
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