Report: Drug companies profit from dual eligibles

Share this article:

The pharmaceutical industry is experiencing a "windfall" from Medicare's coverage of dual eligibles in the Part D drug program, according to a news report.

Companies are benefiting from the transfer of drug coverage for dual eligible beneficiaries from state Medicaid programs to the Medicare prescription drug benefit. The new benefit exempts Part D drugs from "best price" price rebates. Before the implementation of the drug benefit, drug makers were required to give these rebates to state Medicaid programs.

Without the rebates, the annual cost to states for drugs for beneficiaries who are eligible for both Medicare and Medicaid would have been about 25% higher, said Stephen Schondelmeyer, a professor of pharmaceutical economics at the University of Minnesota.
Share this article:

More in News

Antipsychotics reduction goal is 25% by end of 2015, CMS and provider groups announce

Antipsychotics reduction goal is 25% by end of ...

Long-term care providers are being asked to reduce the use of antipsychotic medications among residents by 25% by the end of 2015, and 30% by the end of 2016. Providers ...

CDC issues new guidelines on pneumococcal vaccine, says LTC flu vaccination rates remain low

CDC issues new guidelines on pneumococcal vaccine, says ...

Long-term care workers continued to have low rates of flu vaccination last season, despite there being 92% vaccination coverage overall among physicians and nurses, the Centers for Disease Control and ...

AL operators accused of withholding $2M in unpaid overtime, minimum wages ...

Four California assisted living operators are facing eight felony charges related to wage theft, tax and insurance violations, according to local reports.