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Mon Dec 3, 2012, 10:30 AM

WashPost: How Obama would cut Medicare spending in a deficit deal


ThinkProgress' chart of the cuts that comprise the $400 billion the administration is proposing to cut:

The two cuts that generate the biggest savings are applying Medicaid drug rebates to the Medicare Part D program and reducing the reimbursement rate to post-acute care providers, like nursing homes and assisted living facilities. Letís dig into those a bit more since together they account for more than half of the White Houseís proposed savings.
Right now, Medicaid gets a really good deal on prescription drugs: Manufacturers have to sell their prescriptions to the entitlement program at the very best price they offer private insurance plans or 23.1 percent lower than the average price. This has lead to big discounts for the program: The Office of the Inspector General at Health and Human Services estimates that this provision has reduced Medicaid spending on drugs by 45 percent.

All in all this doesn't seem terrible, although I have a few concerns about the cuts to skilled nursing. But there is no proposal to raise the eligibility age at this point, or to significantly cut benefits.

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Reply WashPost: How Obama would cut Medicare spending in a deficit deal (Original post)
democrattotheend Dec 2012 OP
Bluenorthwest Dec 2012 #1
democrattotheend Dec 2012 #2

Response to democrattotheend (Original post)

Mon Dec 3, 2012, 11:34 AM

1. Except Bush made it so Medicare can not negotiate for drug prices nor go to other


sources for them, so it is a bit muddled to claim Medicare gets 'a really good deal' or that manufacturers do not get the best and most gravy laden portion of that deal.

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Response to Bluenorthwest (Reply #1)

Mon Dec 3, 2012, 02:49 PM

2. The article claims MEDICAID gets a good deal

Not Medicare. I don't understand all the details, but I think the president's plan is to have dual eligibles, i.e. seniors eligible for both Medicare and Medicaid, get their prescriptions through Medicaid instead of Medicare so that the government can pay the negotiated rates. Or it might be that the drug companies just have to pay the rebates they pay for drugs for Medicaid recipients for those Medicare recipients who also qualify for Medicaid.

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