Jeff Bingaman: “I rise today to with Senators Kerry, Akaka, Salazar and Whitehouse to introduce the Drug Rebate Equalization Act of…”

“I rise today to with Senators Kerry, Akaka, Salazar and Whitehouse to introduce the Drug Rebate Equalization Act of 2007. As you know, the Medicaid drug rebate ensures that State Medicaid programs receive the best price for prescription drugs for their beneficiaries. Unfortunately, health plans that serve over 10 million Medicaid beneficiaries cannot access the same discounts through the Federal drug rebate program. Plans typically get no rebate on generic drugs and about a third of the rebate on brand drugs as States receive. Therefore, States are paying more for the acquisition of prescription drugs for these health plan enrollees than for beneficiaries in fee-for-service Medicaid, raising costs for Federal and State governments. Even with this price disadvantage, the total cost of prescription drugs for health plans is less on a per member per month basis because of health plans' greater use of generics and case management. Unfortunately, many States are considering carving prescription drugs out from health plans for the sole purpose of obtaining the rebate, thereby undermining plans' ability to maintain a comprehensive care and disease management program that includes prescription drugs. Not only will this legislation save money, it will eliminate this incentive and ensure that health plans can maintain a comprehensive care coordination system for their patients.”