The U.S. Department of Health and Human Services Office of Inspector General (OIG) posted on October 25, 2023 Advisory Opinion No. 23-08, in which OIG rejected a proposed arrangement from a cochlear implant device manufacturer (the requestor) that would provide a free hearing aid to certain qualified patients who received a cochlear implant. OIG concluded the proposed arrangement could generate prohibited remuneration under the federal Anti-Kickback Statute (AKS) and the Beneficiary Inducement Law and could violate those laws if the requisite intent were present.
Under the proposed arrangement, the manufacturer would offer a bundle consisting of a cochlear implant made by the manufacturer and a free hearing aid manufactured by a third party. The cochlear implant would be purchased by a hospital or ambulatory surgical center (ASC), and for certain “bimodal hearing candidates,” a hearing aid would be provided for free to the patient along with the cochlear implant. OIG determined that the proposed arrangement implicated the AKS because the manufacturer would provide remuneration in the form of a free hearing aid that may induce patients and providers (e.g., ASCs) to purchase the manufacturer’s cochlear implant, which is reimbursable by FHCPs.
Recent Posts
Industrial Air Pollution and Newborn Hearing Screening Failure
The connection between air pollution and hearing loss has been established for over a decade, with most research focusing on adults. Studies have also shown that…
EHDI Program Eliminated
On April 1, President Trump’s administration eliminated the entire branch of the Early Hearing Detection and Intervention (EHDI) program that works with states to analyze…
Speak Up Today: Modernize Medicare Payment Policy
Congress is preparing to take action on a budget reconciliation package the week of May 5, and now is a critical time for the audiology…