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HHS/CMS RIN: 0938-AN58 Publication ID: Spring 2006 
Title: Medicare Part B Competitive Acquisition of Outpatient Drugs and Biologicals (CMS-1325-F) 
Abstract: Section 303(d) of the Medicare Modernization Act requires the implementation of a competitive bidding program for Medicare Part B drugs not paid on a cost or prospective payment system basis. Beginning July 1, 2006, physicians will be given a choice between purchasing these drugs and being paid by Medicare under the average sales price (ASP) system, or obtaining these drugs from vendors selected in a competitive bidding process. If the physician elects to obtain drugs from a competitive vendor, the vendor will bill Medicare for the drug. 
Agency: Department of Health and Human Services(HHS)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Long-Term Actions 
Major: No  Unfunded Mandates: No 
CFR Citation: 42 CFR 414   
Legal Authority: MMA of 2003, sec 303(d)   
Legal Deadline:
Action Source Description Date
Final  Statutory    07/01/2006 
Timetable:
Action Date FR Cite
NPRM  03/04/2005  70 FR 10745   
Interim Final Rule  07/06/2005  70 FR 39022   
Final Action  07/00/2008    
Regulatory Flexibility Analysis Required: Yes  Government Levels Affected: None 
Small Entities Affected: Businesses  Federalism: No 
Included in the Regulatory Plan: No 
Agency Contact:
Corinne Axelrod
Health Insurance Specialist, Hospital and Ambulatory Policy Group
Department of Health and Human Services
Centers for Medicare & Medicaid Services
Mailstop C5-14-03, 7500 Security Boulevard,
Baltimore, MD 21244
Phone:410 786-5620
Email: corinne.axelrod@cms.hhs.gov