Medicare Part D: Drug Pricing and Manufacturer Windfalls
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Serial Number
Levin Center Identifier
Document Date
2008-07-24
Report Length
15 pages
Policy Agendas Project Major Code
Policy Agendas Project Minor Code
Additional, Minority, Dissenting Views
Report Type
Found Using Methodology
Yes
Committee(s)
Subcommittee(s)
Commission(s)
Idependent Author(s)
Brief Executive Summary
The House Committee on Oversight and Government Reform compares drug prices under the Medicare Part D program with those under traditional Medicaid, revealing that Medicare Part D pays on average 30% more for drugs than Medicaid. The prices paid for drugs under Medicare Part D are found to be significantly higher than those paid by Medicaid, leading to a windfall of over $3.7 billion for drug manufacturers in the first two years of the Medicare Part D program. The report focuses on the costs to taxpayers for providing drug coverage to six million "dual eligible" beneficiaries, who qualify for both Medicare and Medicaid.