We’ve already put forward one idea that would at would save America's senior citizens $57 million a day by allowing Medicare to negotiate prescription drug prices.
Here’s another idea that would let six million more seniors save on prescription drug costs. It’s simple. We can shift seniors who are eligible for both Medicare and Medicaid back into the Medicaid program, where they can purchase the exact same drugs for less money than they can under Medicare. It will save seniors a fortune and it won’t cost taxpayers a dime.
Right now, more than six million low-income seniors and people with disabilities qualify for health care coverage under both Medicare and Medicaid. These folks are called "dual eligibles." Up until a few years ago, they received their prescription drug benefits through Medicaid. But in 2006, the politicians in Washington decided that dual eligibles should get drug benefits through Medicare Part D instead.
The shift wasn’t necessary. It was just a big payday for some of Washington's most powerful special interests –the big drug companies and their lobbyists.
Why? Seniors on Medicaid pay less for drugs than seniors on Medicare do. Medicaid uses a rebate system to keep its prescription drug prices low. Under the program, drug manufacturers pay rebates to state Medicaid programs for certain prescription drugs. As a result, states can take advantage of prices that drug manufacturers receive for their drugs on the commercial (i.e., non-governmental) market. Those prices reflect discounts and rebates negotiated by private payers. Not so with Medicare Part D. Legislation passed by Congress in 2003 bars the government from using its enormous purchasing power to negotiate lower prescription drug prices for America's seniors.
So let's allow our dual eligibles to get their prescription drugs through Medicaid. That way, they can take advantage of the comparatively lower prescription drug prices that Medicaid has to offer. It will save them –and us– quite a bit.
Send your ideas to: chad@chadmcgowan.com.
Here’s another idea that would let six million more seniors save on prescription drug costs. It’s simple. We can shift seniors who are eligible for both Medicare and Medicaid back into the Medicaid program, where they can purchase the exact same drugs for less money than they can under Medicare. It will save seniors a fortune and it won’t cost taxpayers a dime.
Right now, more than six million low-income seniors and people with disabilities qualify for health care coverage under both Medicare and Medicaid. These folks are called "dual eligibles." Up until a few years ago, they received their prescription drug benefits through Medicaid. But in 2006, the politicians in Washington decided that dual eligibles should get drug benefits through Medicare Part D instead.
The shift wasn’t necessary. It was just a big payday for some of Washington's most powerful special interests –the big drug companies and their lobbyists.
Why? Seniors on Medicaid pay less for drugs than seniors on Medicare do. Medicaid uses a rebate system to keep its prescription drug prices low. Under the program, drug manufacturers pay rebates to state Medicaid programs for certain prescription drugs. As a result, states can take advantage of prices that drug manufacturers receive for their drugs on the commercial (i.e., non-governmental) market. Those prices reflect discounts and rebates negotiated by private payers. Not so with Medicare Part D. Legislation passed by Congress in 2003 bars the government from using its enormous purchasing power to negotiate lower prescription drug prices for America's seniors.
So let's allow our dual eligibles to get their prescription drugs through Medicaid. That way, they can take advantage of the comparatively lower prescription drug prices that Medicaid has to offer. It will save them –and us– quite a bit.
Send your ideas to: chad@chadmcgowan.com.
