Medicaid pays more for prescription drugs

A new federal report says that Medicaid pays significantly more for drugs than either wholesalers or hospitals. Lawmakers immediately seized on the report's findings to call for a new reimbursement method. Medicaid on average pays 12 percent more than wholesalers and 36 percent more than hospitals, according to investigators. Medicaid reimburses pharmacists for beneficiaries' drugs, and pharmacists say they can't buy drugs at the same price as wholesalers or hospitals.

- read this AP report for more