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HFMA News - Bill to Require Feds to Reimburse States for Drug Costs

HFMA NEWS


Monday, January 23, 2006
Bill to Require Feds to Reimburse States for Drug Costs

Bipartisan legislation has been introduced by senators Frank Lautenberg (D-NJ) and Olympia Snowe (R-Maine) to require the federal government to reimburse the 26 states that have paid for prescription drugs for dual-eligible seniors who have had trouble getting their prescriptions filled under Medicare Part D. Although CMS says it will help states recoup the money from the private insurance plans administering the Medicare drug benefit, the legislation seeks to have Medicare directly reimburse the states, according to an article in the Pittsburgh Post-Gazette. State officials say CMS’s offer is not adequate because private insurers will reimburse a discounted price for the drugs. The article quotes David Parrella, vice chair of the National Association of State Medicaid Directors, who says that the 26 states “have no contract with the plans. So what’s their incentive to be prompt and cooperative with us?”

posted on 1/23/2006 12:00:00 AM (CST)  Permalink