Lawmakers say pharmacists inflating charges for Medicaid drugs
CAPITOL HILL Lawmakers say some pharmacists are taking advantage of Medicaid pricing rules to get profits of 200 to 300 percent on generic drugs. The investigation of Medicaid drug prices is the subject of a Capitol Hill hearing today.
House Energy and Commerce Committee Chairman Joe Barton says Medicaid reimbursement is "more generous than that of most private payers."
Five big retail pharmacy chains have told investigators that drug stores pay an average of 22 cents for seven widely prescribed generic drugs. Investigators found the stores then get 56 cents in reimbursements from Medicaid.
Barton says pharmacists often acknowledge they're paid too much for some drugs, but say the inflated prices are needed to offset inadequate fees for other services to Medicaid recipients.
Massachusetts Democrat Ed Markey says the system "almost begs to be exploited."
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