tci Medicare Compliance & Reimbursement - 2005 Issue 28

MEDICAID: Reps Rail Against Medicaid Drug System

Report says newer generics, AWPs are inflating drug costs.Judging by the tone of a recent hearing, U.S. representatives are set to take a hard look at how the government decides on Medicaid drug payments.During "Medicaid Prescription Drugs: Examining Options for Payment Reform," held in Washington in late June, several reps decried the paradox plaguing the Medicaid drug payment system, which is supposed to be a tool for keeping prescription prices down. Despite the system's ostensible intentions, however, representatives claimed that it is serving a polar opposite purpose."Generic drugs are supposed to promote competition and...

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