Corporate Compliance

OIG issues interim rule on CMPs for drug card violations

Compliance Monitor, May 26, 2004

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The OIG announced it can fine those who defraud Medicare's Discount Drug Card program $10,000 per violation, as stated in an interim final rule published May 19 in the Federal Register.

The action can be taken in addition to or in place of CMS sanctions. According to the OIG, it has been authorized to impose civil money penalties (CMPs) against an endorsed drug card sponsor for violating certain marketing and monetary practices.

According to the rule, a violation would occur when an endorsed drug card sponsor

  • provides misleading information to a program enrollee or other person
  • overcharges a program enrollee
  • misuses the transitional assistance funds of a program enrollee.

    To read the interim final rule, click here.



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