Many health care providers nearly missed the new law when it was passed last May because it was embedded in a huge budget bill: the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act of 2007.

Although the original implementation date was postponed, it is doubtful further delays will be approved. Develop your plan against fraud and substance abuse now.

Phased implementation
Per the Centers for Medicare & Medicaid Services (CMS), on April 1, 2008 tamper-resistant prescription pads must have at least one of the following three characteristics below. By October 1, 2008, all three of the characteristics must be present.

• One or more industry-recognized features designed to prevent unauthorized copying of a completed or blank prescription form
• One or more industry-recognized features designed to prevent erasure or modification of information written on the prescription by the prescriber
• One or more industry-recognized features designed to prevent counterfeit prescription forms

Exceptions
According to guidance issued by CMS, the tamper-resistant statute does not affect faxed, emailed, or phoned-in prescriptions or prescriptions filled on an emergency basis. In addition, it does not apply when the prescription is written by a managed care facility.

Consequences of noncompliance
Each state is responsible for enforcing this law. Noncompliance could result in:

• Loss of reimbursement for Medicaid prescriptions
• Denied prescriptions from pharmacies
• Penalties
• Action from law enforcement and licensing boards
• Unsafe patients due to medical complications
• Disgruntled patients
• Damaged reputation and loss of market share due to negative publicity

Background
In response to protests from physicians and pharmacists requesting more time to comply, the original implementation date (October 1, 2007) for this law was delayed by the President in September 2007. Congress approved the provision for the delay as part of a broader relief bill that extends Medicaid’s transitional medical assistance and abstinence education programs through the end of the year.