Interim Final Rule on OIG Civil Money Penalties Under the Medicare Drug Discount Card Program

Mondaq Business Briefing, July, 2004

I. Introduction

The Office of the Inspector General ("OIG") of the U.S. Department of Health and Human Services ("HHS") has issued an interim final rule that sets forth the OIG's new authority for imposing civil money penalties ("CMPs") against endorsed sponsors under the Medicare prescription drug discount card program ("the CMP interim final rule") established under the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (the "MMA").1 Under the new regulations, endorsed sponsors who "knowingly engage in false or misleading marketing practices, overcharge program enrollees, or misuse transitional assistance funds" will be subject to CMPs. While the CMP interim final rule is effective as of June 18, 2004, comments on the rule may be submitted to the...