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We propose to use our authority under section 1899(d)(1)(B)(ii) of the Act to calculate benchmark year expenditures using the proposed methodology to account for the impact of improper payments

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In addition, because reconciling a rebate amount imposes substantial administrative burden on CMS to reprocess the rebate amount, retest the reporting system, and reissue a Rebate Report, CMS proposes in 428.401(d)(2) that it may exercise discretion not to initiate recalculation of the rebate amount in these situations which are outside of the regular reconciliation process proposed in 428.401(d)(1)

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