APPENDICES

APPENDIX~A

Calculation of Potential Savings for Category I Enteral Nutrition Formulas

1. To determine percentage differences between contract prices for Category I enteral nutrition formulas and Medicare’s reimbursement amount, we subtracted the median price for each source from the Medicare reimbursement amount. We then divided this number by the Medicare reimbursement amount.

2. To calculate potential Medicare and beneficiary savings by price source, we multiplied total Medicare Part B allowances ($201,066,767) for Category I enteral nutrition formulas in 2001 by the percentage differences.

APPENDIX~B

Centers for Medicare & Medicaid Services’ Comments

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