RAO Davao City

United States Military Retiree Activities Office Davao City, Philippines

MEDICARE PART “D” UPDATE August 15 2008

Posted by Service Officer on August 14th, 2008

A new report from the House Committee on Oversight and Government Reform found that people who get coverage from both Medicare and Medicaid (a group sometimes called “dual eligible”), pay 30% more for prescription drugs under the Medicare prescription drug benefit (Part D) than they would if Medicaid paid the bill. According to the study released 25 JUL, this discrepancy in pricing accounted for $3.7 billion in revenue for drug manufacturers during the first two years of the Part D program. The Medicare Prescription Drug, Improvement, and Modernization Act of 2003, which established the drug benefit, required that Medicare Part D, not Medicaid, cover the cost of drugs for people with both Medicare and Medicaid. Many nursing-home residents fall into this category. Democrats in the House say this overpayment is an unjustified burden on the taxpayer, and they seek to correct the problem through new legislation. But House Republicans have countered that the new report overlooks important aspects and benefits to dual eligibles contained in the Part D program. Under Part D, for example, dual eligibles have access to a greater variety of prescription drugs. [Source: Medicare Rights Center 12 Aug 08 ++]

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