According to a report released by the House Committee on Oversight and Government Reform, Medicare Part D paid about 30 percent more for prescription drugs in the program’s first two years than Medicaid would have paid for the same drugs. This has cost the program about $3.7 billion. (Kaiser Network)
Drug company Johnson & Johnson received a whopping $615 million more from Part D than it would have received from Medicaid.
Lawmakers already are trying to fix the problem. Congressman Henry Waxman, Democrat from California and committee chair, said he’ll introduce a measure to require the drug benefit to pay only what Medicaid would have paid for dual eligible coverage. Republicans and Kerry Weems, acting administrator of the Centers for Medicare and Medicaid Services, said Part D gives beneficiaries more choices than Medicaid.
You may download the 15-page report here (PDF).
