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N.J. Medicaid could save by cutting test strip prices, OIG says

N.J. Medicaid could save by cutting test strip prices, OIG says

WASHINGTON - Reducing reimbursements for blood glucose test strips to retail rates or establishing competitive bidding pricing could have saved New Jersey's Medicaid program between $1.8 million and $2.7 million in 2011, the OIG reported in a Sept. 11 report. During calendar year 2011, reimbursement from New Jersey's four Medicaid managed-care organizations was $3.1 million more than retail prices and $4.5 million more than competitive bidding pricing, according to the report. Reducing the rate or relying on competitive bidding could have saved the agency between 49% and 70%, the OIG reported. The OIG recently issued similar reports for New York and Illinois. The oversight organization noted that New Jersey's Medicaid agency disagreed with its recommendations.

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