As rising costs of prescription drugs are consuming larger
percentages of Medicaid budgets, federal and state governments
have become more committed to reducing the risk of fraud,
abuse, and waste arising from drug rebates and, accordingly,
are increasing their scrutiny of pharmaceutical manufacturers'
compliance with drug rebate policies. These efforts are paying
off, as demonstrated by the huge settlements obtained against
pharmaceutical companies thus far. Moreover, in its recently
released "Work Plan for 2004," the OIG has indicated that it
will evaluate the adequacy of drug manufacturers'
methodologies for computing AMP and best price, noting that
previous reviews conducted in the 1990s had uncovered numerous
shortcomings. States are also becoming more diligent in their
administration and enforcement of drug rebate collections.
Thus, prescription drug benefits are expected to receive
more press coverage and government scrutiny in the coming
years. Accordingly, it is critical for any player in the
pharmaceutical industry to adhere to current price-reporting
policies; understand new reporting and record-keeping
requirements; and ensure compliance with Medicaid's,
Medicare's, and other public programs' drug benefit
Drug Benefit Trends 16(1):16-18, 2004. ©
2004 Cliggott Publishing, Division of CMP Healthcare
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