From The New York Times, 7/18/06:
http://www.nytimes.com/2006/07/18/business/18place.html?ex=1310875200&en=64d069c630394419&ei=5088&partner=rssnyt&emc=rss
A Windfall From Shifts to Medicare
By MILT FREUDENHEIM
The pharmaceutical industry is beginning to reap a windfall from a
surprisingly lucrative niche market: drugs for poor people.
And analysts expect the benefits to show up in many of the quarterly
financial results that drug makers will begin posting this week.
The windfall, which by some estimates could be $2 billion or more this
year, is a result of the transfer of millions of low-income people
into the new Medicare Part D drug program that went into effect in
January.
Under that program, as it turns out, the prices paid by insurers, and
eventually the taxpayer, for the medications given to those
transferred are likely to be higher than what was paid under the
federal-state Medicaid programs for the poor.
About 6.5 million low-income elderly people or younger disabled poor
people were automatically transferred into the Part D program for drug
coverage.
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Surprised? I didn't think you were.
Harry
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