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September 07, 2002


NY Times on Medicaid drug purchasing

NY Times bashing has become great sport in the blogosphere. If one can bash them when wrong, then one must congratulate them when they are right. They have this one right. The Battle Over Drug Discounts

The Pharmaceutical Research and Manufacturers of America, a trade association, argues that the states have no right to press its members in this way after they have already negotiated prices with the federal government. Most of their arguments sound like procedural quibbles. In the private sector, health maintenance organizations and medical institutions have long used formularies, or preferred lists, to favor low-priced medicines and extract discounts. There is no good reason state Medicaid programs should not be allowed to do the same. If the Medicaid laws need to be modified to let that happen, then Congress should do so quickly.

The more difficult issue comes when states tell manufacturers they cannot be on a preferred list for Medicaid unless they offer discounts to non-Medicaid patients as well. Some states do this on behalf of the near-poor, but a few have pushed the idea further. Maine is demanding discounts for any resident who lacks insurance coverage for prescription drugs and wants to be part of the state program. The Maine case is headed for the Supreme Court, and the solicitor general's office has expressed doubts about its legality. Some patient groups fear that Medicaid beneficiaries will be harmed if manufacturers who would otherwise provide drugs for Medicaid drop out rather than grant discounts to the broader population.

I have noticed that I agree with the Democrats on this issue, and the Republicans on the trial lawyer issue. That probably makes me an independent - or I would claim a free and clear thinker.

Posted by on September 07, 2002 06:48 AM | TrackBack




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It would be nice if everybody could find a doctor with half the common sense of this one. - Junkyardblog

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