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Section 1128(b)(6)(A) of the Act provides for the permissive exclusion from
Federal health care programs of any provider or supplier that submits a claim
based on costs or charges to the Medicare or Medicaid programs that is ‘‘substantially
in excess’’ of its usual charge or cost, unless the Secretary
finds there is ‘‘good cause’’ for the higher charge
or cost. The exclusion provision does not require a provider to charge everyone
the same price; nor does it require a provider to offer Medicare or Medicaid
its ‘‘best price.’’ However, providers cannot routinely
charge Medicare or Medicaid substantially more than they usually charge others.
Hospitals have raised concerns regarding the impact of the exclusion authority
on hospital services, and the OIG is considering those concerns in the context
of the rulemaking process. The OIG’s policy regarding application of
the exclusion authority to discounts offered to uninsured and underinsured
patients is discussed below.
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