OIG: Illinois could have saved $8.5M on diabetes test strips

WASHINGTON ­- Illinois could have saved an additional $8.5 million in 2011 by reducing Medicaid provider reimbursement rates for diabetes test strips to Medicare rates, according to a report from the Office of the Inspector General (OIG). Through its manufacturer rebate program, the Illinois Medicaid program reduced the net cost of test strips purchased during fiscal year 2011, but savings may have been limited because of the higher Medicaid reimbursement rates, according to the OIG. The agency recommends that the state lower the cost of diabetes test strips by changing the provider reimbursement rates of the Medicaid program to match those of Medicare. The state concurred with the recommendation.