NCPA Statement On House Medicare Part B DMEPOS Surety Bond Legislation

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Pharmacy / Pharmacist
Article Date: 06 Apr 2009 - 3:00 PDT

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U.S. Representatives Zach Space (D-OH) and Jo Ann Emerson (R-MO) have introduced H.R. 1970,the Preserve Patents Access to Reputable DMEPOS Providers Act of 2009. The bill exempts pharmacies from having to post surety bonds in order to provide Medicare Part B Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) to their patients. In response, National Community Pharmacists Association (NCPA) Executive Vice President and CEO Bruce T. Roberts, RPh, issued the following statement:

"Community pharmacies want to continue providing their patients access to life-saving supplies and related services -- such as diabetes testing strips -- through participation in the DMEPOS program. Unfortunately, CMS' regulations require pharmacists to purchase $50,000 surety bonds to guard against fraud where there is no record of impropriety, while 14 other similarly-licensed medical providers have been exempted.

"Representatives Zach Space and Jo Ann Emerson's bill sensibly removes the onerous surety bond costs for pharmacists, which when added to the several thousand dollar costs mandated by the DMEPOS accreditation requirements, are out of proportion with the small percentage that DMEPOS represents for independent community pharmacies' overall revenue. H.R. 1970 places the surety bond payment burden where it belongs-on the backs of those who run afoul of the program. We urge House members to cosponsor H.R. 1970 and move it as quickly as possible so reputable pharmacists won't have to meet these unnecessary requirements."

The Centers for Medicare & Medicaid Services (CMS) issued a DMEPOS final rule that requires pharmacies to obtain a surety bond to continue selling DMEPOS by October 2, 2009. The average independent community pharmacy's DMEPOS-generated revenue only comprises a small percentage of their gross annual sales. In fact, many independent community pharmacies percentages fall well below that threshold.

Fourteen other medical professions are exempted from the surety bond requirement because of their state licensure, expertise and training-all qualities that pharmacists share. In rural and urban areas independent community pharmacies are often the only health care provider that provides access to health care supplies. H.R. 1970 will assure patient access to DMEPOS supplies and the consultation of their community pharmacist.

The National Community Pharmacists Association, founded in 1898, represents the nation's community pharmacists, including the owners of more than 23,000 pharmacies. The nation's independent pharmacies, independent pharmacy franchises, and independent chains dispense nearly half of the nation's retail prescription medicines.

Source
National Community Pharmacists Association

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