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They, in turn, could hire pharmacy benefit managers like Express Scripts, Medco Health Solutions and AdvancePCS to negotiate with drug makers, issue discount cards and line up networks of pharmacies.
In June, Medicare will issue discount cards for seniors without drug coverage, including cut rates for the needy.
Note that in the reverse situation, the government attributes original issue discount, or OID, to any security with a zero coupon or below-market coupon.
A glitch in the rules for "original issue discount" causes this obligation to be treated as a debt instrument, with an imputed interest burden.
Ironically enough, the utterly complicated rules on original issue discount are in the tax code only because the IRS needed them to combat tax dodges involving zero coupon bonds.
A second rule says that original issue discount on a muni bond is treated as a substitute for tax-exempt income, and you don't owe tax on it at either ordinary or capital gain rates.
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[C4.] UBS SEEKS CAPITAL UBS, the Swiss bank, said it would issue discounted shares to raise more than $15 billion as it tried to restore capital depleted by losses on mortgage securities.
At one point in the late 1990s, Browder recounts, Vladimir Potanin, an oligarch with 96% of the oil company Sidanco, attempted to issue discounted shares at a closed subscription available only to insiders.
But the companies issuing discount cards can do so.
Under each bill, a company issuing discount cards would have to consult an independent committee of doctors, pharmacists and other experts before deciding which drugs qualify for discounts.
[C4.] Major Problems Found in Discount Drug Program Congressional investigators said that they found widespread problems in a program that issued discount cards to 6.4 million Medicare beneficiaries as a precursor to the full-fledged drug benefit that takes effect next year.
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CEO of Professional Science Editing for Scientists @ prosciediting.com