Rep. Bart Stupak, D-Mich. (1st CD), issued the following news release:
Congressman Bart Stupak (D-Menominee) has introduced legislation that seeks to protect and strengthen Medicaid while saving taxpayer dollars. Stupak's bill, the Medicaid Prescription Drug Rebate Equalization Act of 2007, would make managed care organizations that administer Medicaid eligible for rebates on generic and brand name prescription medications, just as state administered plans are already. It is anticipated that the legislation would save the federal government as much as $2 billion over 5 years and save the State of Michigan $100 million a year. 'This bill will save the federal government money and could save Michigan significant dollars at a time when Michigan needs it most,' Stupak said. 'Under the current law, both the State of Michigan and the federal government are overpaying for drugs and those costs are being borne by taxpayers.' More than 57 million Americans, including 1.5 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 by managed care organizations contracted by states. In Michigan, two-thirds of Medicaid beneficiaries receive their benefits through a managed care organization. Unlike states, Medicaid managed care organizations currently are not eligible for rebates on generic and brand name prescription medications. By making managed care organizations eligible for discounts, Stupak's bill would ensure that states and the federal government are not overcharged for medications and that consumers are receiving the best price on their prescription drugs.
'Currently, 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.' Michigan Governor Jennifer M. Granholm endorsed Stupak's bill. 'This legislation will help our Medicaid program achieve greater savings and make our Medicaid plans more efficient,' said Granholm. 'In a time of tight state budgets, it is critical the federal government give us every opportunity to reduce costs without reducing care.' The legislation is supported by the Association for Community Affiliated Plans and the Medicaid Health Plans of America. In addition, 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.Contact: Alex Haurek, 202/225-4735.
Alex Haurek, 202/225-4735.
