ATLANTA — Following the introduction of a bill Jan. 21 that would exempt pharmacies from accreditation, last week three pharmacy groups asked CMS to reconsider its new $50,000 surety bond rule.
In a Feb. 2 letter to Charlene Frizzera, CMS acting administrator, the groups urged the agency to reconsider the regulation, which they said "creates costly, onerous requirements for community pharmacies and jeopardizes patients' access to necessary health care products and services ...
"At a time when policymakers are underscoring management of chronic diseases as a cornerstone of health care reform, this regulation will fragment care by depriving patients of the tools necessary in disease management, which will ultimately raise federal health care spending," the letter continued. "For example, if pharmacies are unable to afford the cost of the surety bonds and participate in the Medicare program, diabetic patients are likely to face difficulties in obtaining their blood glucose testing supplies and pharmacists' counseling to control their disease."
From the Food Marketing Institute, the National Association of Chain Drug Stores and the National Community Pharmacists Association, the letter said that in issuing the requirement, CMS noted the surety bond would provide some protection to Medicare from fraudulent payments. However, the groups said they thought other anti-fraud measures should be strengthened "instead of forcing the surety bond requirement on legitimate health care providers such as state-licensed pharmacies."
Under the rule, by Oct. 2 all DMEPOS providers participating in Medicare will need surety bonds for at least $50,000 per NPI number (see AAHomecare, VGM to Offer Surety Bonds, HomeCare Monday, Jan. 12). New suppliers must post a bond by May 4.
The groups asked Frizzera to reopen the notice and comment period and seek additional views about the impact of the bond requirement on Medicare beneficiaries and legitimate suppliers.
View the letter on the NACDS Web site.