WASHINGTON, March 9 -- Rep. Bart Stupak, D-Mich. (1st CD), issued the following news release:
U.S. Congressman Bart Stupak (D-Menominee) applauded President Obama for including in his budget blueprint a provision to strengthen the Medicaid program while saving taxpayer dollars. Obama's budget includes a provision introduced in the U.S. House of Representatives as stand-alone legislation by Stupak, the Medicaid Prescription Drug Rebate Equalization Act of 2009 (H.R. 904).
The budget provision would make managed care organizations eligible for the same rebates on generic and brand name prescription medications that state-administered plans receive under the Medicaid program. The proposal would save the federal government as much as $11 billion over 10 years and invest those savings in expanding health care coverage for uninsured Americans. The state of Michigan would stand to save $1.8 billion over the same period.
'My legislation and President Obama's budget will save the federal government money and could save Michigan significant dollars at a time when we need it most,' Stupak said. 'Under the current law, both Michigan and the federal government are overpaying for drugs and taxpayers are bearing that burden.'
More than 59 million Americans, including 1.77 million Michigan residents, rely on Medicaid, the federal-state funded health initiative for low-income individuals and families. Medicaid plans are administered by states or managed care organizations contracted by states. In Michigan, two-thirds of Medicaid beneficiaries receive their benefits through a managed care organization. By making managed care organizations eligible for discounts, Stupak's bill would prevent drug companies from overcharging states and the federal government for medications and ensure consumers are receiving the best price on prescription drugs.
'Managed care organizations that administer Medicaid pay a premium price for their drugs,' Stupak said. 'Those costs are then passed on to the taxpayers at both the state and the federal level. My bill would correct this, ensuring Medicaid managed care organizations receive rebates on prescription medications, just like state-run Medicaid plans do.'
Stupak said he is pleased to see President Obama realizes the time has come to modernize the Medicaid program and ensure that the savings available help provide health coverage for uninsured Americans.
Stupak's legislation is supported by the Association for Community Affiliated Plans and the Medicaid Health Plans of America. The National Governors Association, the National Association of State Medicaid Directors, the National Association of Community Health Centers, the National Medicaid Commission, and the Partnership for Medicaid have expressed support for extending the drug rebate plan.For more information please contact: Sarabjit Jagirdar, Email:- htsyndication@hindustantimes.com.
Nick Choate, 202/225-4735.
