Massachusetts Drug Rebates

Massachusetts bill would allow rebates for brand-name prescription drugs.
The AP (8/13, Moran) reported that in Massachusetts, consumers may soon gain the ability to "get discounts or rebates from pharmaceutical companies to help them pay for pricey brand-name prescription drugs." Legislation "to allow for such co-payment discounts, sometimes referred to as coupons, has passed both chambers and needs final approval from both before being sent to Gov. Deval Patrick (D)" for his signature. Proponents of the measure "say co-payment discounts or rebates would let more consumers purchase the brand-name prescription drugs they need."
Massachusetts hospitals say they are facing slashed payments on multiple fronts. The Boston Herald (8/16, Norton) reports that "Massachusetts hospitals say they are facing slashed payments on multiple fronts, cuts that executives predict will destabilize the healthcare delivery system." Massachusetts "plans this fiscal year to cut reimbursements by $75 million in its main contract between hospitals and MassHealth, according to the Massachusetts Hospital Association, which cited 'discussions' with the state in outlining the proposed cut to its members over the weekend.'" The Herald added, "The association said pay-for-performance programs would continue in 2011 but that instead of additional funding being paid to hospitals, MassHealth would withhold 2 percent of all hospital inpatient and outpatient payments and hospitals would then need to earn the payments back."