tci Medicare Compliance & Reimbursement - 2005 Issue 27

MEDICARE DRUG BENEFIT: CMS Demanding Extensive Formularies From PDPs

Some sponsors say government going back on its word.Could the Part D drug benefit wind up being a lot less profitable than many prospective sponsors hope?New guidance released by the Centers for Medicare and Medicaid Services echoes what the agency has been telling many sponsors in one-on-one meetings about the sponsors' formulary designs, and the news is troubling to some health plans and pharmacy benefit managers. In a new Frequently Asked Questions document available on its Web site, CMS reiterates that sponsors of prescription drug plans will need to include in their formularies "all or substantially all"...

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