Government
Health centers, public hospitals missed out on drug discounts
NEWS IN BRIEF — Posted July 26, 2004
The federal Drug Discount Program is supposed to ensure that community health centers, public hospitals and others who serve low-income patients receive discounted prices for prescription medications. But a Dept. of Health and Human Services Office of Inspector General analysis of September 2002 data showed that wasn't the case 31% of the time.
Clinics and hospitals that should have received the discounts overpaid by about $41.1 million, according to an OIG report released in June.
The OIG says the overpayments occurred because the Health Resources and Services Administration's Pharmacy Affairs Branch doesn't have a process to confirm that qualifying hospitals and clinics are receiving the lower rates. Also, the OIG said problems occur because HRSA doesn't have the authority to enforce the 1992 law that established the discount program.
To prevent overcharging, the OIG recommends that HRSA spot check transactions and develop a legislative proposal that would create penalties against drug companies that violate the rules.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/07/26/gvbf0726.htm.
