Pharmacy Groups Ask CMS to Reconsider Surety Bond

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.