CMS Needs to Better Oversee Drugmaker Price Estimates, GAO Report Finds
The Centers for Medicare & Medicaid Services (CMS) performs only minimal oversight of drugmaker-reported best prices -- a practice that has resulted in taxpayers being overcharged for prescription drugs purchased through Medicaid, according to a new government report.
In administering the program, the CMS conducts only limited checks for reporting errors in manufacturer-reported drug prices, according to the study by the Government Accountability Office (GAO). "CMS conducts limited reviews of prices and only reviews price determination methods when manufacturers request recalculations of prior rebates," the report said.
Lawmakers from both parties jumped on the GAO's findings, with one powerful Senate Republican calling the current situation "a mess that does not properly account for billions of taxpayer dollars."
The GAO recommended that the CMS establish clear guidance on pricing methods and the definition of best price, and that the agency take steps to improve its oversight process.
The GAO report, "Medicaid Drug Rebate Program: Inadequate Oversight Raises Concerns about Rebates Paid to States," is available online at http://www.gao.gov/docsearch/abstract.php?rptno=GAO-05-102 (http://www.gao.gov/docsearch/abstract.php?rptno=GAO-05-102).