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CRE Statement on "Inherent Reasonableness" for Retail Pharmacy Diabetic Supplies
Date:7/24/2012

WASHINGTON, July 24, 2012 /PRNewswire/ -- The Center for Regulatory Effectiveness' Statement, delivered at today's CMS Public Meeting on:  "Inherent Reasonableness of Medicare Fee Schedule Amounts for Non-Mail Order (Retail) Diabetic Testing Supplies," is attached in pdf here and reprinted below.  The Federal Register notice for the meeting is attached here.  Comments are due to CMS by July 30th although the date may be extended.

Statement of the:

Center for Regulatory Effectiveness

before the Centers for Medicare and Medicaid Services

Public Meeting Regarding Inherent Reasonableness of Medicare Fee Schedule Amounts for Non-Mail Order (Retail) Diabetic Testing Supplies

July 23, 2012

Introduction

I'm Bruce Levinson, Senior Vice President, Regulatory Intervention at the Center for Regulatory Effectiveness. We're a regulatory watchdog focused on ensuring agency compliance with the "good government" laws that regulate the regulators.

I would like to start by thanking CMS for holding this public meeting. This meeting is an important example of outreach activities that President Obama called for in his landmark Open Government Memorandum which directed agencies to be Transparent, Participatory and Collaborative.

CMS Does Not Have "Valid and Reliable Data" for Use in Setting Diabetic Supply Prices

CMS' Federal Register notice for this meeting stated that, according to their own rules, they must "use valid and reliable data" in determining whether a payment amount is "grossly excessive or deficient."

The competitive bidding data from the Round 1 Rebid, however, is emphatically NOT valid and reliable.
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SOURCE Center for Regulatory Effectiveness
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