June 23rd, 2008

“Gov. Rendell says he can save $95 million a year by changing the way Pennsylvania buys drugs for the massive Medicaid program,” reports the Philadelphia Inquirer:

“The administration wants to centralize drug purchasing, now handled by HMOs, within the Department of Public Welfare because the law allows the state to get far larger rebates than commercial insurers.

The opponents contend that although Rendell’s drug “carve-out” plan could trim nearly $100 million from the Medicaid budget, hidden expenses would siphon off the savings. And they said the care of more than a million people on Medicaid could be compromised.

The GOP has introduced legislation to prevent the DPW from taking over the “pharmacy benefits” of 1.2 million Pennsylvanians now on managed Medicaid or the HealthChoices program.”

To get detailed explanations of both sides of the argument, read the entire article at the Inquirer online.