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Part D/Medicaid price differentials

Executive Summary

Rep. Henry Waxman (D-Calif.) asks the Government Accountability Office to examine price differences for individual drugs under the Medicare Part D and Medicaid programs in a Jan. 27 letter. Waxman asserts that the transition of Medicaid/Medicare dual-eligible beneficiaries to Part D will "likely result in a multi-billion dollar windfall for drug manufacturers." In particular, Waxman asks GAO to investigate whether drug prices paid by PDPs are higher than Medicaid "best price," determine the magnitude of the differential cost for individual drugs, and estimate the total magnitude of the costs differences in 2006 and over the next 10 years...

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