Drug rebates mean immediate fiscal relief for some Medicaid programs

June 2010
State Health Watch;Jun2010, Vol. 17 Issue 6, p1
The article presents information on the expanded drug rebate program covering drugs prescribed to enrollees of Medicaid managed care plans. The Medicaid discount provisions are based on the Drug Rebate Equalization Act legislation that may provide states with substantial savings. The Lewin Group estimated a total Medicaid savings of 12.6 billion dollars over five years from 2009-2013 for states using a carve-out approach. However, the reform will have little or no impact on states with fee-for-service budgets.


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