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Private Medicare Drug Plans: High Expenses and Low Rebates Increase the Costs of Medicare Drug Coverage
House Committee on Oversight and Government Reform
House Committee on Oversight and Government Reform
Abstract
The Committee on Oversight and Government Reform investigated the proprietary cost and pricing data in the Medicare Part D program. To gather this data, the committee analyzed multiple administrative expenses, sales costs, profits, and drug rebates from 12 leading insurers who offer Medicare and Medicare Advantage. The main findings from this investigation show that Part D insurers: have high administrative expenses, have not negotiated with drug manufacturer rebates, have been receiving rebates on drug purchases, have created a formula that makes beneficiaries and taxpayers victims to price increases, and do not have a clear stance on generic drugs.
Date
2007-10-15
Document Type
House Majority Staff Report
Serial Number
Document Length
23 pages
Congress
110
Relation
DOI
Keywords
Staff Reports, House, Democratic
PAP Major Code
3: Health
PAP Minor Code
335: Prescription Drug Coverage and Costs
Related Hearings
• House Committee on Oversight and Government Reform, hearing on "Allegations of Waste, Fraud, and Abuse in Pharmaceutical Pricing: Financial Impacts on Federal Health Programs and the Federal Taxpayer," 110th Cong., H.Hrg. 110-4, (2007, February 9)
• House Committee on Ways and Means, hearing on "Negotiating Lower Prices for America’s Seniors," 108th Cong., (2003, December 11)
• Senate Finance Committee, hearing on "The Medicare Prescription Drug Benefit," 109th Cong., (2005, September 14)
• House Committee on Ways and Means, hearing on "Negotiating Lower Prices for America’s Seniors," 108th Cong., (2003, December 11)
• Senate Finance Committee, hearing on "The Medicare Prescription Drug Benefit," 109th Cong., (2005, September 14)
Press Releases and Contextual Information
https://web.archive.org/web/20080430223615/http://oversight.house.gov/story.asp?ID=1536