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OIG: Handful of brands account for half of the market

OIG: Handful of brands account for half of the market

WASHINGTON - There's dozens of different types of diabetes testing supplies, but a select few dominate the market, says a new study by the Office of Inspector General (OIG).

The OIG studied 1,210 claims submitted during a three-month period that ended in December 2009, and projected the sample data to the mail order population to estimate Medicare market share.

Of the 75 types of test strips that mail order providers billed for, two strips, Lifescan's One Touch Ultra and Bayer's Acensia Contour, accounted for about 26% of mail order, with 14.9% and 11.1% respectively. Seven brands accounted for about 50% and 19 brands accounted for about 81% of the Medicare market share.

The Medicare Improvements for Patients and Providers Act (MIPPA), passed in July 2008, required the study to determine market shares of diabetes testing strips. In future rounds of Medicare's national competitive bidding program, MIPPA will require that contracts be awarded to mail order providers who offer brands that cover at least 50% of the market by volume.

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