Lexology November 7, 2023
On Oct. 25, 2023, the Office of Inspector General (OIG) for the Department of Health and Human Services (DHHS) issued an unfavorable opinion in response to a manufacturer’s proposal to offer and provide a free compatible hearing aid to certain patients, including federal health care program beneficiaries, who receive one of the manufacturer’s cochlear implants – the “arrangement” in this text. The hearing aids have a retail value of between $1,180 to $2,240, and the patients would receive them for free. Although the implants are reimbursable by Medicare, the hearing aids are not.
The OIG expressed concern that the arrangement would encourage patients to choose the manufacturer’s implant device over other options. Accordingly, the OIG concluded that, if undertaken with...
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