Part D Contracting

The OIG has issued a report entitled "Review of Medicare Part D Contracting for Contract Year 2006."  The report examines Medicare prescription drug plan (PDP) sponsors’ strategies for contracting with local, community pharmacies to provide Part D prescription drugs to Medicare beneficiaries. The pharmacies and their pharmacy services administrative organizations reported experiencing problems related to PDP sponsors’ network development methods, standard terms and conditions, extended-day supply terms, negotiations, and network requirements and contracting requirements. The OIG provided a number of recommendations related to contracting practices.

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