Medicaid plan would create pool for drug purchases

One of the big stories in Washington over the next few days is likely to be the release of the plan drafted by state governors containing their recommendations for turning around the embattled Medicaid program. The New York Times obtained a draft copy of the report, highlights of which appear in today's paper. The governors endorse the idea of tax credits to help individuals and small businesses buy coverage. They are also in favor of requiring drug companies to offer discounts to Medicaid. Most controversially, they recommend creating group purchasing pools to win better prices from pharmaceutical makers, something the Bush administration has opposed. Importantly, there is strong backing for tougher rules governing the ways in which participants can shield their assets when they go into nursing homes.

- see this story from The New York Times