The Patient Protection and Affordable Care Act (Section 3310)
Section 3310 of the Patient Protection and Affordable Care Act requires Medicare Part D Plans to employ utilization management techniques to reduce the per-fill quantity of prescription medications dispensed to beneficiaries residing in LTC facilities. The intent of this "short cycle dispensing" provision is to reduce unused medications by moving from traditional 30-day fills to biweekly, weekly, or daily fills.
The rationale behind this mandate is that shorter fills will result in fewer unconsumed medication units ("waste") that normally occur due to medication switching, discharges from the facility, death or other causes. In March 2010, the Congressional Budget Office issued an estimate of budgetary impact that included $5.7 billion in Part D program savings from the implementation of short cycle dispensing.