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Multi-Billion Dollar Medicare Windfall for Pharmaceutical Industry ...

... The result is similar to Dr.

Schondelmeyer's: the drug prices under the new Medicare program would appear to be 29% higher than prices under Medicaid.[15] The net result is a multi-billion dollar windfall for the drug manufacturers.

According to the Congressional Budget Office, over the next ten years the federal government share of drug costs for the 6.4 million dual-eligible beneficiaries will be an average of approximately $2,500 per beneficiary per year, which is equivalent to $160 billion over the decade.[16] If Dr.

Schondelmeyer's estimates are accurate and these drug prices are 20% to 30% higher than the prices paid under Medicaid, the magnitude of the windfall could reach more than $30 billion over the next ten years.[17] Th...

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