Drugs for Medicare/Medicaid Eligible Seniors Subject Of Obama Proposal

Uphill Road For Plan To Cut Government Drug Costs by Katie Thomas and Robert Pear.  The New York Times.  February 14, 2013.

While this proposal has little chance of passage due to the opposition of Republicans and the pharmaceutical industry may nevertheless have significance in future negotiations about budget cuts in Medicare and Medicaid.  Since 2006, those eligible for Medicare and Medicaid received drug coverage through Medicare.  The significance of this is that the rate charged by drug makers to Medicare are higher than the rate allowed by drug makers to Medicaid.  President Obama proposes to have the nine million people eligible for Medicare and Medicaid covered under Medicaid, a proposal, in his view, could realize substantial savings for the government.