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CMS Considers Inherent Reasonableness Rule To Lower Pay For Diabetes Test Supplies

The use of a relatively obscure CMS fee-adjustment authority rather than competitive bidding to lower Medicare payment for diabetes testing supplies in the retail setting could be precedent setting.

The diabetes testing supplies industry last week was questioning the “inherent reasonableness” rule that CMS may employ as an alternative to competitive bidding in lowering Medicare payment for diabetic testing supplies sold at retail.

If the agency moves forward with a proposal to use the relatively obscure rule to adjust reimbursement for non-mail order diabetic testing supplies – blood glucose strips, lancets or related...

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