OIG: Three strips dominate market

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Wednesday, March 27, 2019

WASHINGTON – The top three types of diabetes test strips accounted for just over half of the non-mail order market, and the top 10 types accounted for approximately 93% of the market, according to a new report from the Office of Inspector General.

The sampled claims included 34 types of test strips provided to Medicare beneficiaries from April-June 2018.

This is the second of two OIG reports providing market shares of diabetes testing supplies during that time period. The first report, released in January, provides market share for the national mail order program during that same time period.

The reports are meant to inform future rounds of competitive bidding for diabetes testing supplies.

CMS announced in March that it would not include a national mail order program for diabetes testing supplies in Round 2021 to give it time to make changes required by the Bipartisan Budget Act of 2018. All bid contracts expired on Dec. 31.

In an effort to ensure access to a variety of diabetes testing supplies, the budget for the Department of Health and Human Services for fiscal year 2019 includes a provision that would strengthen the 50% rule by: requiring bidders to attest to their ability to maintain an inventory of strips consistent with their bid, and requiring CMS to establish and maintain a surveillance program to ensure suppliers are complying with the rule.