OIG: Medicaid drug rebates 'substantially higher' than Medicare Part D

A report from the Department of Health and Human Services Office of Inspector General (OIG) found that Medicaid rebates for 200 selected brand-name drugs are "substantially higher" than those same rebates under Medicare Part D. Rebates accounted for 47 percent of Medicaid drug expenditures in 2012, OIG found, compared to just 15 percent for Part D. In addition, Medicaid's net unit costs--pharmacy reimbursement amounts minus rebates--were much lower than Part D's net unit costs. OIG encouraged the Centers for Medicare & Medicaid Services to explore ways to obtain additional rebates under Medicare Part D. Report (.pdf)