Iowa Governor Tells Alabama Democrats How To Reduce Medicaid Costs
Iowa Governor Tom Vilsack was in Birmingham this week, speaking to members of the Alabama Democratic Party. One thing this great Democratic Governor is doing is seeking a way to reduce the outrageous Medicaid drug costs in Iowa. Alabama should follow his lead.
Under Vilsack's leadership, Iowa is joining with Maine and Vermont to negotiate lower prices for the drugs they buy for Medicaid recipients.
Vilsack said Iowa and the federal government would save about $11 million a year under the new pool. The governments spend about $391 million annually on medicine for Iowa's 300,000 Medicaid recipients, with the state footing about a third of the bill.
"Together, our group of states will achieve pharmaceutical rebates that will far exceed the amount that each," Vilsack said. Other, unidentified states are talking about joining the purchasing pool.
As reported in the De Moines media, Roger Munns, a spokesman for the Iowa Department of Human Services, said any savings would be used to run the Medicaid program, whose costs are constantly increasing.
Under the new pool, participating states would retain their power to determine which drugs are covered by their Medicaid plans.
The federal government approved the arrangement.
Alabama needs to do the same, which will lower the costs of Medicaid to the state and strenghten the Mediciad program for Alabama's seniors, according to the Rev. Jack Zylman of Birmingham. "Will Alabama Governor Bob Riley step and do the same, or will he just sit around getting Dick Cheney to raise money for him?"