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U.S. auditors say Medicaid overpays for drugs

Reports issued by the Inspector General for the Dept. of Health and Human Services contend that Medicaid is overpaying for drugs by hundreds of millions or even billions of dollars a year. The health insurance plan for low-income and disabled people incorporates pricing formulas intended to keep the costs of prescription drugs in check, but they’ve often had the opposite effect.

The reports are available at the IG’s website.

A news report on the IG’s findings appeared in the June 29, 2005 edition of the Los Angeles Times (subscription required).

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