Medicaid rebates running at 20% in Michigan; Rx spending up 4% despite 7% drop in scripts.

Executive Summary

MICHIGAN MEDICAID REBATES RUNNING AT 20% OF PHARMACEUTICAL EXPENDITURES through fiscal 1997, according to program figures released at the University of South Carolina public policy conference in Hilton Head, S.C. Michigan calculated that it received $72.8 mil. in rebates for FY 1997 out of total drug expenditures of $365.3 mil. The figure includes estimated payments during the fourth quarter. Medicaid agencies receive a minimum 15.1% rebate on pharmaceuticals, and are entitled to rebates matching the manufacturer's "best price."