Performance Improvement 2009. Do Average Sales Prices for Five Inhalation Drugs Exceed Market Prices?

01/01/2009

This study determined whether the volume-weighted average sales price exceeded market price by at least 5 percent for of the five inhalation drugs under review.

The volume-weighted average sales price for two of the five inhalation drugs under review (albuterol and levalbuterol) exceeded market price by at least 5 percent in the second quarter of 2007. The Medicare payment amount for albuterol in the third quarter of 2007 was 13 times greater than the market price in the previous quarter because of the agency’s decision to reestablish a single drug code for albuterol and levalbuterol beginning July 1, 2007. After the analysis, the Centers for Medicare & Medicaid Services separated albuterol and levalbuterol back into two codes, thereby establishing separate payment amounts for the two drugs.

Report Title: A Comparison of Average Sales Prices to Widely Market Prices for Inhalation Drugs http://www.oig.hhs.gov/oei/reports/oei-03-07-00190.pdf

Agency Sponsor: OS-OIG, Office of Inspector General
Federal Contact: Erin Lemire, 202-205-9523
Performer: Staff; Office of Inspector General
PIC ID: 8988

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