OIG to NY: Establish bid program for diabetes test strips

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Friday, July 12, 2013

WASHINGTON – The New York State Department of Health could have saved about $5.9 million by establishing a competitive bidding program for diabetes test strips like Medicare, according to a report from the Office of Inspector General (OIG). The department saved about 51% on strips by obtaining manufacturer rebates, but Medicare reimbursement for strips under Round 1 of competitive bidding were still lower than the average Medicaid reimbursement after the rebates, the report states. For example, the highest Medicare reimbursement for a 50-unit package of strips in Round 1 areas in calendar year 2011 was $15.62, whereas the department’s net average Medicaid reimbursement for a 50-unit package of strips provided from Oct. 1, 2009, through Sept. 30, 2010, was $24.54. The department generally concurred with the OIG’s recommendation. FMI: http://go.usa.gov/jrWj.