August 24,2006

Chairman Grassley Praises Medicare Action on Compounded Inhalation Drugs

WASHINGTON – Sen. Chuck Grassley said the Medicare program is doing the right thing by making changes in how it pays for compounded inhalation drugs.

“Tightening up the payment system will help program administrators get a handle on the magnitude of compounding when it comes to inhalation drugs. That information will help make
it clearer what policy changes need to be made to better ensure that we pay for drugs that are safe
and meet legitimate medical needs,” Grassley said.

The Centers for Medicare and Medicaid Services announced the changes in a letter sent this week to Grassley. That letter is posted at, along with Grassley’s July letter seeking action by the federal government.

Grassley today also urged the Medicare program to work closely with the Food and Drug Administration so that drug-safety officials could better identify the companies who are engaged in inappropriate or illegal compounding and, in turn, better protect patients.