Jeff Bingaman United States Senator from New Mexico

WASHINGTON – U.S. Senator Jeff Bingaman today renewed his effort to pass legislation that seeks to protect and strengthen Medicaid while saving taxpayer dollars.

More than 50 million Americans rely on Medicaid, the federal-state funded health initiative for low-income individuals and families.  Medicaid plans are administered by states and/or managed care organizations contracted by states.  Unlike states, Medicaid managed care organizations currently are not eligible for rebates on generic and brand name prescription medications and therefore they are being charged a premium price for those drugs.

To ensure that states and the federal government are not overcharged for medications, Bingaman today introduced the Drug Rebate Equalization Act of 2009.  This legislation will allow health plans run by Medicaid managed care organizations to receive rebates on prescription medication just as states do.  Not only will this legislation ensure that health plans maintain a comprehensive care coordination system for their patients, but it also has the ability to save the federal government as much as $11 billion over 10 years. 

“This bill will not only allow Medicaid beneficiaries’ rebates on prescription medications, but it will also save taxpayer dollars,” Bingaman said.

The Medicaid drug rebate ensures that State Medicaid programs receive the best price for prescription drugs for their beneficiaries.  This policy was included in President Obama’s 2010 budget request that was released two weeks ago.