Medicaid patients have received higher rebates for their prescription drugs than patients enrolled in the Medicare Part D program, according to an August report by the Dept. of Health and Human Services Office of Inspector General.
Medicaid, which uses a statutory inflation-based formula to set discounts, collected $2.9 billion in rebates from drug manufacturers for every $6.4 billion in expenditures in 2009, the report found. Part D, which relies on rebates negotiated with drug companies, collected only $4.5 billion in rebates for every $24 billion worth of spending. Medicaid drug costs were $26 billion in 2009.
Unlike the Medicaid program, the Part D plans operated by private contractors negotiate rates with drug manufacturers without any federal statutory requirements on rebate amounts, CMS Principal Deputy Administrator Marilyn Tavenner said in a memo responding to the report. The government is prohibited by statute from instituting a price structure for drug payments under Part D.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.