Medicaid drug spending is resulting in an overcharge to states and taxpayers of millions of dollars, according to a report from the Government Accountability Office that calls for greater oversight by the CMS. Prices paid by states through the Medicaid program are supposed to match the lowest prices offered by drug companies to private purchasers. The report, requested by Rep. Henry Waxman (D-Calif.) and Sen. Chuck Grassley (R-Iowa), however, found that drug manufacturers in their pricing policies with states are failing to take into account discounts and price concessions given to private purchasers that would lower the prices paid by states. The report found that the CMS conducted only minimal oversight of drug pricing and did not review at all the methods used by drug manufacturers to determine and report their prices. The report recommended that the CMS provide clearer guidance on pricing methods and the definition of "best pricing." -- by Tony Fong
GAO report targets Medicaid drug spending
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