2006 proposed fee schedule - American Society of Clinical Oncology

calculation. We also discuss the submission of ASP data,
including WAC, and our intent to propose, in a separate
notice, the collection of additional information from
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manufacturers, using a revised reporting format, to ensure
more accurate calculation of the Medicare payment amounts.
Also, included in this section is a discussion of the
weighting methodology we follow to establish the Medicare
payment amounts using the ASP data.
a. Estimation Methodology for Lagged Price Concessions
Section 1847A(c)(5)(A) of the Act states that the ASP
is to be calculated by the manufacturer on a quarterly
basis. As a part of that calculation, manufacturers are to
take into account price concessions such as--
● Volume discounts.
● Prompt pay discounts.
● Cash discounts.
● Free goods that are contingent on any purchase
requirement.
● Chargebacks.
● Rebates (other than rebates under the Medicaid drug
rebate programs).
If the data on these price concessions are lagged, then
the manufacturer is required to estimate costs attributable
to these price concessions. Specifically, the manufacturer
sums the price concessions for the most recent 12-month