U.S. Is Proposing to Cut Medicaid’s Drug Payments

[Target_For_Exterm]

"WASHINGTON, Dec. 17 — The Bush administration on Monday will propose sweeping reductions in payments to pharmacies as a way to save money for Medicaid, the health program for more than 50 million low-income people.

The goal is to ensure that Medicaid can get drug discounts similar to those provided to large customers in the private market, including companies like Caremark Rx and Medco Health Solutions that manage drug benefits for people who have health insurance through an employer. Congressional investigators have found that Medicaid pays 35 percent more than the lowest price available in the private market for some commonly used brand-name drugs.

States, which share the cost of Medicaid with the federal government, make the final decision on what pharmacies are paid, subject to federal limits.

The proposed rule would provide new data for states to use in their calculations, redefining the “average manufacturer price” for brand-name and generic drugs."

http://www.nytimes.com/2006/12/18/washington/18medicaid.html?hp&ex=1166418000&en=f6522c2017b47073&ei=5094&partner=homepage

This is going to be another Bush screw up. They're not negotiating with drug companies to lower costs, they're squeezing pharmacies in the middle. What's going to end up happening is that Medicaid recipients are not going to be able to find pharmacies to fill their prescriptions. What incentive do drug companies have for lowering their costs they charge to pharmacies? None.

I have no objections to negotiating to lower costs, but they need to make sure the recipient is protected from being locked out of the market by pharmacies who don't want to get squeezed. What good is a drug benefit that you can't use?

[Cleita]

1. I'm speechless. n/t

[sandnsea]

2. Well just peachy

Oregon just implemented a program where everybody can get the Medicaid drug rate, as a few other states have done. Along comes Bush cutting money to Medicaid, which probably means states will have to cut covered medication so those of us without insurance will be out again. I swear he just wants to kill anybody who doesn't suck up to the corporate teet for every blessed thing in their life.

[rodeodance]

3. according to this-it will small pharmacies that get hit-in rural areas

The administration said the rule could reduce revenues for many of the nation’s 18,000 small retail pharmacies. The administration also said it had no way to measure that impact precisely, though it acknowledged the reductions could fall particularly hard on “those in low-income areas where there are high concentrations of Medicaid beneficiaries.”

Officials said that pharmacies could “mitigate the effects” of the lost revenue by buying lower-cost drugs. This assumes that pharmacies can find another source of supply: generic drug companies willing to lower their prices below the new federal limits.

The public will have 60 days to comment on the proposals. The government will weigh the comments and then issue a final rule with the force of law.

[rodeodance]

4. and this means the patient will not have a pharmacy.

[proud2BlibKansan]

5. Ah they can just go to WalMart

You know there is a WalMart in every small town in America, right? :)

[windbreeze]

6. that's the whole idea

big drug chains will benefit...to hell with the little guy...
wb

[area51]

7. republinazi party

The republinazi party always seeks ways to kill off humans. They are the anti-life party.

[Traveling_Home]

8. Last year I remember .....

reading a story in the Denver Post that in essence said that Colorado Medicaid would pay 30% more for a kidney transplant at Children's Hospital than any insurance company in the state. Medicaid comes from tax dollars and, in many cases, has people waiting for services (e.g At Home Attendent Care vs. Nursing Home). It is not right that a Program for the lowest-income group in this country pays more than private insurance for any type of health care, including drugs. Paying more means less help for our neediest citizens - like me and my friends in the Disability Forum. This is a good thing. If a hospital, doctor, pharmacy, lab, etc, can afford to give Blue Cross a lower rate for anything than they give to Medicaid - something is wrong.

I don't understand your complaints.

T