Negotiation for State Senior Drug Coverage Plan Lowers Costs, Governor Says

Wisconsin's ability to negotiate prices with drug manufacturers may come to an end, as the Centers for Medicare & Medicaid Services (CMS) wants the state to transform its prescription drug coverage plan for seniors into a Medicare-based program.

Wisconsin's SeniorCare program is allowed under a waiver from the federal government that will expire June 30. If the waiver is not extended, seniors will be "forced into" Medicare Part D plans with higher payments and coverage gaps, Gov. Jim Doyle said.

Under the program, the state government can negotiate with drugmakers to get discounts, leading to lower drug costs for participants, Doyle noted at a Senate Special Committee on Aging hearing. The negotiating power also saves taxpayers money, he said.

The federal government does not negotiate drug prices with companies for Medicare. However, several other states have transitioned from waiver programs like Wisconsin's to Medicare programs without major price increases, CMS Administrator Leslie Norwalk said.