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

Bulk of Medicaid to be managed care in two years: Avalere

Bulk of Medicaid to be managed care in ...

More than three-quarters of Medicaid beneficiaries will be enrolled in a managed care plan as of 2016, according to an Avalere Health analysis released Thursday. The numbers reveal that managed ...

Nursing home asked for employee's personal information too often, jury rules

The human resources department of a Maine nursing home did not properly protect a former employee's personal identification information, a jury recently ruled.

Test could confirm sepsis within an hour

Nursing home residents might benefit from a new way of diagnosing and treating sepsis made possible by discoveries out of the University of British Columbia.