Investigation: Patients' Drug Options Under Medicaid Heavily Influenced By DrugmakersJuly 18, 20185:00 AM ET
Heard on Morning Edition
"This is a business. And they would only be investing in this if it yielded returns."
Warner Chilcott, which is now owned by Allergan, was trying to beat one of the few mechanisms set up by state Medicaid agencies to hold down drug costs for taxpayers and ensure safety for patients.
How we investigated drugmakers' influence over Medicaid
The Center for Public Integrity began investigating the influence of the pharmaceutical industry on state Medicaid programs eight months ago. Prescription medications under those programs cost states tens of billions of dollars annually. The cost nearly doubled between 2008 and 2016
For more details on the methodology, see the description at CPI's website.
Medicaid, which uses state and federal tax dollars to pay for health care for 76 million poor or disabled Americans, tries to ensure that patients get drugs that work the best and yet are also affordable. States put those drugs on what they call
"preferred drug lists."While Medicaid must pay for nearly all drugs by law, states can make it harder to get more expensive or less effective drugs by requiring doctors to fill out cumbersome administrative paperwork to prescribe those not on the preferred lists.
Warner Chilcott's practices were particularly brazen and even illegal because the employees submitted false information to states. It pleaded guilty to felony health care fraud and agreed in 2015 to pay $125 million in civil and criminal fines. Allergan declined to comment.
A Center for Public Integrity and NPR investigation found drug companies have infiltrated nearly every part of the process that determines how their drugs will be covered by taxpayers: giving free dinners, consulting gigs and paying for state Medicaid officials to attend all-inclusive conferences where they can mingle with drug representatives.
Drugmakers use other tactics to get their products paid for by the Medicaid programs: lobbying state lawmakers to achieve their goals or helping doctors fill out extra paperwork to get Medicaid to pay for the costlier drugs as Warner Chilcott did. The result is that Medicaid sometimes spends more than necessary and may pay for medicines inappropriate for patients.
An example:
Enriching the decision-makers
Dr. Mohamed Ramadan volunteers on the 16-member Arizona committee that decides the state's list of preferred drugs.
He also earned more than $700,000 since 2013 from drug companies, federal data show, a healthy supplement to his $259,000 salary as a psychiatrist at a mental health clinic.
Some of the drugmakers' payments to Ramadan came in the form of lunches, dinners, travel, and consulting fees. But the bulk of it — more than $500,000 — was compensation for work such as speaking at events promoting certain drugs. Pharmaceutical companies paid Ramadan for these types of events 333 times over four and a half years — an average of more than once a week.
When we have profit over the welfare of its citizens, without regulations or laws to prevent the tilting of the scales towards more to the benefit of the industry, we have a very real problem. Do you agree?
Feel free to read more at:
http://www.publicintegrity.org/2018/07/18/21953/how-we-investigated-drugmakers-influence-over-medicaid