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N.C. Medicaid Chooses New Diabetic Supplies Vendor; Savings to State of $6 Million Annually Expected

For release: Immediate    November 15, 2011
Contact: Brad Deen (919) 855-4840

RALEIGH — N.C. Medicaid is set to save $6 million annually through a sole-source contract for diabetic supplies.

Roche Diagnostics Corp., maker of the Accu-Chek line of blood glucose meters and test strips, beat eight competitors for the contract, which takes effect Nov. 15. It is for one year, with options for another two years.

The Division of Medical Assistance (DMA), North Carolina’s Medicaid agency, entered a similar arrangement two years ago with Prodigy Diabetes Care. That contract expired Nov. 14.

DMA is working with both Roche and Prodigy on a transition plan that will extend into January. During the transition period, Roche will provide a glucose meter to the nearly 77,000 N.C. Medicaid and N.C. Health Choice members living with diabetes. As under the previous contract, other brands will be available on a prior-approval basis for specific medical circumstances.

The meters are free. DMA will pay for disposable test strips, control solution, lancets and lancing devices. Insulin syringes, which Prodigy supplied under the expiring contract, are no longer a sole-source item.

Savings to the state and taxpayers come through volume-based rebates Roche will pay DMA for exclusive use of its products. Roche’s $6 million in anticipated rebates to be paid annually were more than $2.3 million per year above the second-place bidder. Prodigy’s expired agreement with DMA called for $2.1 million in annual rebates.

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