On December 9, 2002, the Office of Inspector General ("OIG") withdrew a notice of proposed rulemaking that would have allowed for direct payment of Medicare Part B or Medigap premiums by independent dialysis facilities on behalf of financially needy End Stage Renal Disease ("ESRD") patients, creating an exception to existing law, which currently prohibits such practices. Withdrawal of the proposed rulemaking was based upon concerns that the arrangement had potential for abuse; would create demands for additional exceptions for patients with other chronic diseases; would result in financial losses for insurance companies and ultimately, increased insurance rates; and the existence of other effective lawful mechanisms through which ESRD patients receive similar financial assistance.
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