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The Office of Inspector General ("OIG") Issues Report Comparing Medicare Part D and Medicaid Pharmacy Reimbursement Amounts




by:
Joseph V. (Joe) Geraci
Brown McCarroll, L.L.P. - Austin Office

Mia C. Garcia
Brown McCarroll, L.L.P. - Houston Office

 
March 25, 2009

Previously published on February 27, 2009

On February 27, 2009, the OIG issued a report comparing Medicare Part D and Medicaid pharmacy reimbursement amounts for selected drugs at the national level.  The OIG found that the average Part D and Medicaid pharmacy reimbursement amounts were similar for most of the selected drugs.  There was less than a five percent difference between Part D and Medicaid amounts.  Additionally, the average unit ingredient costs were very similar.

The OIG also found that Medicaid pharmacy reimbursement amounts generally exceeded the average Part D reimbursement amounts for selected multiple-source drugs.  The Medicaid ingredient cost exceeded the average Part D ingredient cost for more than half of the multiple-source drugs reviewed.  The Medicaid dispensing fee exceeded the average Part D dispensing fee for these multiple-source drugs by at least 55 percent.

CMS agreed with the OIG’s findings.



 

The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.
 

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