Sunday, October 3, 2010

Drug Makers Accused of Ignoring Price Law

Drug manufacturers are required by law to provide the government with pricing data needed to calculate discounts on medications prescribed for poor people under Medicaid. This article reveals that most manufacturers do not always provide this information and as a result Medicaid pays a large percentage of the prescriptions. Under Obama's new health care law, this problem is expected to grow because it increases the discounts and the amount of people on Medicaid. The government will begin enforcing $10,000 a day penalty on manufacturers that refuse to follow regulations. This is a prime example of the three legged stool analogy. The mistakes of the market sector (manufacturers) Medicaid (the non profit sector).

-Victoire Iradukunda

http://www.nytimes.com/2010/10/03/us/03drug.html?ref=us

No comments:

Post a Comment