HHS withdraws exclusionary rule

June 25, 2007

The Department of Health & Human Services has withdrawn a controversial proposed rule that would have allowed it to exclude from government health programs any provider that submitted reimbursement claims to Medicare, Medicaid, and other federal and state healthcare programs that were held to be "substantially in excess" of the provider's "usual charges," unless the provider had "good cause" to submit the claim.

The Department of Health & Human Services has withdrawn a controversial proposed rule that would have allowed it to exclude from government health programs any provider that submitted reimbursement claims to Medicare, Medicaid, and other federal and state healthcare programs that were held to be "substantially in excess" of the provider's "usual charges," unless the provider had "good cause" to submit the claim. The rule had raised concerns for its vague terminology and broad implications. "Withdrawing this unnecessary, burdensome, and inflexible rule makes good sense for patients, the government, and community pharmacy," commented Steven C. Anderson, NACDS president and CEO.

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