OIG Urges Medicaid To Lower Drug Payment Limits Quickly

Law360, New York (October 16, 2012, 8:05 PM EDT) -- An inspector general's report released Tuesday found Medicaid is still overpaying for some prescription drugs and recommended that the program quickly implement changes — opposed by the pharmacy industry — that would lower the maximum reimbursement for these drugs.

The inspector general for the Health and Human Services Department looked at what's known as the “federal upper limit,” or the maximum amount Medicaid will pay for a drug that has a generic. For years, FULs were based on drugs' published prices, supplied by drug companies to...
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