Accredo Health Inc. (ACDO) Comments On CMS Remodulin Reimbursement Change And Increases Fiscal 2005 Earnings Per Share Estimate
10/19/2005 5:12:03 PM
Accredo Health, Incorporated (NASDAQ:ACDO) today reported that the Centers for Medicare and Medicaid Services (CMS) instructed the Durable Medical Equipment Regional Carriers (DMERCs) to adjust the 2004 pricing allowance for Remodulin(R) (Treprostinil) to $61.75 per milligram. The adjustment is retroactive to January 1, 2004, and allows Medicare DMERC providers to rebill all relevant claims that were reimbursed at reduced rates during that period. Since January 1, 2004, the effective date of the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA), the DMERCs established payment rates for the 10 mg Remodulin(R) vial size at rates that are below the Company's acquisition cost of the drugs. In addition, one regional DMERC was paying all Remodulin(R) vial sizes at the same rate per milligram as that of the 10 mg vial, thus reducing the Company's reimbursement for all Medicare recipients of Remodulin(R) in that region.