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Indiana health reform spending estimate reduced

NEWS IN BRIEF — Posted Nov. 8, 2010

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Indiana's estimated spending under the health system reform law will be $333 million lower than an earlier estimate by the same consultant.

Indianapolis, Ind.-based Milliman Inc. had calculated in a May 21 report that Indiana would spend at least $2.9 billion to implement the law between 2014 and 2020. But a follow-up Milliman report released Oct. 18 reduced that estimate by about $333 million due to a revised Centers for Medicare & Medicaid Services interpretation of the health reform law (link).

Federal law requires manufacturers to provide rebates to states and the federal government for certain drugs. CMS indicated in April that the health reform law increased the federal share of these rebates to include certain existing state rebates, but CMS in September clarified that the federal government would not take any existing Medicaid state rebates, said Marcus J. Barlow, spokesman for the Indiana Family and Social Services Administration. This reduced Indiana's cost under health reform.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/11/08/gvbf1108.htm.

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