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Friday, Nov 6 2015

Full Issue

Kansas Medicaid Costs Likely To Exceed 2016 Estimates

In other state-level Medicaid news, AstraZeneca and Teva reached a multistate agreement in a Medicaid drug pricing case.

Medicaid will cost the state more than the Legislature expected when it passed a budget in June. Budget officials met last week to review caseloads for the state鈥檚 Medicaid, foster care, and welfare systems, determining that the overall cost of the state鈥檚 human services would be $48.9 million more than the amounts approved by the Legislature. ... Most of the funding difference can be attributed to KanCare, the state鈥檚 privatized Medicaid system, which provides health coverage to poor and disabled Kansans. KanCare will cost $40.1 million more from all funding sources for the 2016 fiscal year, which began in July, with $19.4 million of that coming out of the state general fund. The memo says this extra cost can be attributed to a slight growth in population, rising pharmaceutical costs and increases in costs associated with the Affordable Care Act insurers fee. (Lowry, 11/5)

Drugmakers AstraZeneca Plc and Cephalon, a unit of Teva Pharmaceutical Industries Ltd , reached a multistate accord on Wednesday over civil charges they overbilled state Medicaid programs, the New York Attorney General announced. The settlement with the states comes after the U.S. Justice Department settled parallel civil charges with both companies in July. The $54 million to be collectively paid was previously announced by the Justice Department. Of that amount, AstraZeneca is responsible for $46.5 million and Cephalon for $7.5 million. (Lynch, 11/5)

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