KHN Morning Briefing

Summaries of health policy coverage from major news organizations

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HHS Watchdog Says Iowa Failed To Collect $700,000 in Medicaid Drug Rebates

The inspector general for the federal Department of Health and Human Services says that between March 2012 and December 2014 Iowa's Medicaid program did not invoice drugmakers for the rebates that the state and federal government were entitled to. Also, California groups file suit to help some Medicaid patients stay out of managed care networks if the patients want to keep their doctors and specialized providers.

Des Moines Register: Feds: Iowa Failed To Collect $700,000 In Drug Rebates Owed To Medicaid
For almost three years, the Iowa Department of Human Services neglected to collect rebates on pharmaceutical drugs purchased through Medicaid, costing Iowa taxpayers more than $700,000 in lost revenue. The U.S. Department of Health and Human Services’ Office of Inspector General investigated the loss as part of a wide-ranging probe into uncollected drug rebates that the Medicaid program is entitled to receive. (Kauffman, 8/9)

California Healthline: Medi-Cal Sued For Pushing Patients Into Managed Care Despite Judges’ Orders
Like Medicaid programs in many states that want more budgeting certainty or hope to save money, Medi-Cal is shifting many patients like [Alondra] Diaz, with complex conditions, into managed care plans. The plans agree to cover enrollees for a fixed amount per month. But in doing so, they often rely on narrow networks of physicians that do not include the patients’ doctors. ... Two health consumer advocacy groups, Neighborhood Legal Services of Los Angeles County and Western Center on Law and Poverty, sued DHCS Tuesday to help Diaz and the dozens of other Medi-Cal members who’ve had similar rulings [allowing them to stay in the traditional fee-for-service Medi-Cal] overturned by the state. (Bazar, 8/10)

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