The DHHS OIG staff just issued an analysis (http://oig.hhs.gov/oei/reports/oei-07-08-00150.asp) claiming frequent misuse of Atypical Antipsychotic drugs in the NF population. Based on a 2007 sample, their summary says:
For the period January 1 through June 30, 2007, we determined using medical record review that 51 percent of Medicare claims for atypical antipsychotic drugs were erroneous, amounting to $116 million.
A member of Congress requested that OIG evaluate the extent to which elderly nursing home residents receive atypical antipsychotic drugs and the associated cost to Medicare. Specifically, this member expressed concern with atypical antipsychotic drugs prescribed to elderly nursing home residents for off-label conditions (i.e., conditions other than schizophrenia and/or bipolar disorder) and/or in the presence of the condition specified in the Food and Drug Administration's (FDA) boxed warning (i.e., dementia). Medicare requires that drugs be prescribed for "medically accepted indications" for reimbursement. Further, CMS sets standards to ensure that nursing home residents' drug therapy regimens are free from unnecessary drugs.
Medpac (Medicare Payment Assessment Commission) is an independent entity that advises Congress on changes to the Health Care payment schemes. Their annual report to Congress usually sets Medicare payment strategies for the coming year (FY 2012)