By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    medicare part d benefits
    Everything that You Need to Know About Medicare Part D
    August 15, 2022
    Best Ways to Boost Your Immune System this Winter
    Best Ways to Boost Your Immune System this Winter
    November 15, 2022
    back pain issues
    Ways to Treat Constant Back Pain
    August 21, 2023
    Latest News
    How Probate Planning Shapes the Future of Your Estate and Family Care
    July 17, 2025
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    More On Wellness Programs To Improve Health and Reduce Costs
    January 25, 2012
    Privatizing Social Security and Medicare: Who Can Defuse Political Dynamite?
    June 12, 2011
    Study: Risk of Death in Elderly Patients with Dementia Doubled with Some Antipsychotic Medications
    February 26, 2012
    Latest News
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
    How Health Choices and Legal Actions Intersect After an Injury
    July 17, 2025
    How communities and healthcare providers can address slip and fall injuries with legal awareness
    July 17, 2025
    Let Your Lawyer Handle the Work Before You Pay Medical Costs
    July 6, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Two Approaches to Controlling Drug Costs
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Two Approaches to Controlling Drug Costs
BusinessPolicy & Law

Two Approaches to Controlling Drug Costs

JohnCGoodman
JohnCGoodman
Share
2 Min Read
SHARE

The Medicaid Drug Rebate Program has been around for 20 years.  It requires drug manufacturers to rebate to the states about 15 percent of the amount the state pays for brand name prescription drugs, or 11 percent for generics….

The Medicaid Drug Rebate Program has been around for 20 years.  It requires drug manufacturers to rebate to the states about 15 percent of the amount the state pays for brand name prescription drugs, or 11 percent for generics….

Has the Medicaid drug rebate system controlled prescription drug spending?  [A]bsolutely not.  In a 2009 study in the journal Risk Management and Insurance Review entitled “Do State Cost Control Policies Reduce Medicaid Prescription Drug Spending,” the authors assert: “Spending on prescription drugs has been the fastest growing expense category in Medicaid in recent years, with expenses growing on average over 16 percent per year between 2000 and 2004.”  The Congressional Research Service reported in 2008, “The average annual growth in drug spending under Medicaid over the 15-year period from 1990 to 2005 was about 13.1 percent per year.”

 The idea [behind the Medicare Part D program] was to let private sector companies representing millions of seniors negotiate with drug manufacturers for lower prices, and that’s exactly what happened.  The CBO recently estimated that Part D spending will be about 46 percent lower over 10 years than its original projections.

More Read

Image
Top 25 “Most Beautiful” Hospitals
NHS Nurses Wear “Do Not Disturb” Uniforms
Top Tips To Prevent Lung Cancer And Keep Your Lungs Healthy
Who is responsible for patient engagement within pharma?
Baseball Caps, Flip Flops and Melanoma

According to the Centers for Medicare and Medicaid Services, the average monthly Part D premium, which covers about 25 percent of the cost of the program, for standard coverage has increased from $23 a month in 2006 to $30 in 2011.  In effect, about $1 more a month each year.  No other health insurance coverage has grown so little.

Full Merrill Matthews piece worth reading.

TAGGED:healthcare businesshealthcare policyMedicare
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
How IT and Marketing Teams Can Collaborate to Protect Patient Trust
Global Healthcare Policy & Law
July 17, 2025
paramedics in surgical gloves and masks
How Health Choices and Legal Actions Intersect After an Injury
Health care
July 16, 2025
a woman giving a key
How Probate Planning Shapes the Future of Your Estate and Family Care
Health
July 16, 2025
a woman with kinesio tapes on her back arm
How communities and healthcare providers can address slip and fall injuries with legal awareness
Health care
July 16, 2025

You Might also Like

hand-1137978_1920
Health ReformPolicy & Law

Is Time Running Out for CO-OPs?

February 26, 2016

Are Epiphanies the Key to Fixing Healthcare?

March 2, 2015
benefits outsourcing medical billing
FinanceGlobal HealthcareHospital AdministrationMedical Records

Benefits of Outsourcing Your Medical Claims Processing

October 6, 2014

Medtech fundings in August 2015

August 5, 2015
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?