Medi-Cal Officials Say Calif. Could Lose Funds Under Rebate Changes
State officials say Medi-Cal stands to lose up to $50 million in 2011 because of provisions in the federal health reform law that alter the allocation of Medicaid prescription drug rebates, Kaiser Health News reports. Medi-Cal is California's Medicaid program.
In an effort to raise $38 billion over 10 years, congressional Democrats included a provision in the health reform law that required greater discounts from drugmakers selling to Medicaid. Although state and federal governments previously shared Medicaid drug rebates, the reform law shifts a higher portion of the rebates to the federal government.
State officials have expressed concern that the change will siphon millions of dollars per year away from their Medicaid programs.Toby Douglas, deputy Medi-Cal director, said the estimate that California could lose out on $50 million in 2011 is "very preliminary." Douglas said he is waiting to hear further details about rebate change, which could come this week (Weaver, Kaiser Health News, 4/20). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.