Medicaid Pays Less Than Medicare for Many Prescription Drugs, U.S. Report Finds

August 15, 2011
The New York Times
By Robert Pear

Medicaid gets much deeper discounts on many prescription drugs than Medicare, in part because Medicaid discounts are set by law whereas Medicare prices are negotiated by private insurers and drug companies, federal investigators said Monday in a new report.

The report, from the inspector general of the Department of Health and Human Services, could be used by lawmakers trying to cut drug prices as Congress looks for ways to rein in the cost of Medicare under the new deficit-reduction law. Read more

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