Co-pays, drug cuts to save Medicaid $11 bln-report

Fri Sep 2, 2005 12:03 AM BST9


By David Lawder

WASHINGTON (Reuters) - A federal commission on Thursday recommended $11 billion in Medicaid savings over 5 years from raising prescription drug co-payments, drug pricing reforms and curbs against asset transfers to qualify for benefits.

The controversial Medicaid Commission, charged in May with finding $10 billion in immediate savings, delivered its first of two reports to Congress and Health and Human Services Secretary Michael Leavitt.

Costs for the state-federal health care program for the poor have grown dramatically in recent years, reaching $329 billion in the fiscal year ended June 30, according to the National Governors' Association.

It provides care to more than 53 million Americans, but some states, including Tennessee and Missouri, have cut benefits due to cope with growing costs.