§ 65-16,123 — Same; procedural requirements

Kansas § 65-16,123

• Jurisdiction: Kansas
• Ch. 65: PUBLIC HEALTH
• Art. 16: REGULATION OF PHARMACISTS

Text

(a) The entity conducting the audit shall follow the following procedures:
(1) An entity conducting an on-site audit must give the pharmacy at least seven days written notice before conducting an initial audit;
(2) an audit that involves clinical or professional judgment must be conducted by or in consultation with a licensed pharmacist;
(3) the period covered by the audit may not exceed two years from the date that the claim was submitted to or adjudicated by the entity;
(4) the pharmacy may request an extension not to exceed seven days from the date of an originally scheduled on-site audit;
(5) the pharmacy may use the records of a hospital, physician or other authorized practitioner to validate the pharmacy record;
(6) any legal prescription, in compliance with the requirements of the state board of pharmacy, may be used to validate claims in connection with prescriptions, refills or changes in prescriptions;
(7) each pharmacy shall be audited under the same standards and parameters as other similarly situated pharmacies; and
(8) the entity conducting the audit must establish a written appeals process.
(b) The entity conducting the audit shall also comply with the following requirements:
(1) A finding of overpayment or underpayment must be based on the actual overpayment or underpayment and not a projection based on the number of patients served having a similar diagnosis or on the number of similar orders or refills for similar drugs;
(2) the entity conducting the audit shall not use extrapolation in calculating the recoupments or penalties for audits, unless required by state or federal contracts;
(3) the auditing company or agent may not receive payment based on a percentage of the amount recovered, unless required by contracts; and
(4) interest may not accrue during the audit period.
(c) This section shall take effect on and after July 1, 2011.

Legislative History

L. 2011, ch. 114, § 3; June 9.