WASHINGTON BUREAU — Senate Finance Committee leaders want to know what happened to $64 million that the Centers for Medicare and Medicaid Services paid to a New York prescription drug plan provider this year.
The provider, Fox Insurance Company, New York, was terminated from the Medicare Part D drug program March 9, after CMS officials conducted an on-site review and reported finding violations of payment and appeals rules.
Fox, which had 123,000 Part D plan enrollees when it was terminated, is the first company that CMS has cut from the Part D program since the program was created, officials say.
Fox representatives were not immediately available to comment on the CMS allegations and the Baucus-Grassley letter.
Fox has been trying to defend itself in the U.S. District Court in New York.
Fox asked the court to reinstate it as a Part D provider. A district court judge rejected the request March 24, and a 3-judge panel at the 2nd U.S. Circuit Court of Appeals affirmed the decision of the district court judge June 29.