States with a non-profit group to cut drug costs
In the challenge even more important in the fight between states and manufacturers and distributors of drugs, nine states and the District of Columbia, organizing a joint nonprofit in managing the exploitation of their plans prescription, leaders of the effort said yesterday.
The USA intends to maintain expenditure on medicines for millions of workers receiving Medicaid and government by creating an organization designed immunized against drugs are responsible for a lot of movement of their products more expensive.
The new organization is made at a time when two thirds of the USA are reducing Medicaid coverage, restricting or termination benefits eligibility at least one million people. A study by the Kaiser Family Foundation, said yesterday issued state Medicaid directors in expects further reductions in benefits and eligibility. [Page A24.]
Dozens of countries are facing their largest deficits in years. Their deficit for the current year amounted to $ 45 billion and the deficit for the coming year, is projected to rise sharply, reaching 20 per cent or more in some countries.
Expenditure in the health sector is an important part of financial problems with which States face, and drugs are the most rapid growth.New York, for example, increased from $ 2.4 billion for prescription drugs for more than 3 million Medicaid recipients in 2001, 7.5 percent of their total Medicaid spending and an increase of 75 per cent over 1998.
”New York has more to gagner”de the new organization, said Peter E. Shumlin, president of the National Federation Prescription Drug legislation on prices, the group that is organizing the new benefit plan. Mr. Shumlin, a former Vermont state senator, said in New York”tut at least all Staaten”in his group to keep the drug expenditure.
The new drug benefit manager will try to help New York and eight other states - Maine, Massachusetts, Connecticut, Rhode Island, Vermont, New Hampshire, Pennsylvania and Hawaii - maximizing benefits, current drugs can not because of their budgetary constraints.
Drug benefits for state employees and Medicaid in most of the beneficiaries of these countries are now by private companies called pharmacy benefit managers. Under their current contracts, the drug master plan pocket undisclosed substantial payments, known as rebates, from drug makers in return for promoting certain drugs. Then create a list of medicines, the so-called formula collections for different diseases and often lead to price fixing, that the drug plan members of the drug, were encouraged.
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