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For 68 of the 100 brand-name drugs examined in the study, the Medicaid rebate was at least twice as large as the rebate paid to Medicare.
The only defence so far from the government is to insist that the Medicare rebate paid directly to pathology patients has not been cut.
These reviews were successful and have resulted in changes to MBS item rebates, some which occurred with little notice, while others attracted significant attention, as was the case with changes recommended to the rebate paid for cataract surgery.
The government would reduce the Medicare rebate paid to providers by $5 for non-concession card holders from July next year, and it would be up to the provider to decide whether to recoup the money from patients.
As the budget papers make clear in black and white, $650m has been ripped out of diagnostic imaging and pathology by scrapping bulk billing incentives, and the rebate paid for diagnostic imaging has been cut (or "realigned" in the Orwellian speech of the budget).
It would likely get some nice tax subsidies from the Chinese government, which is also offering up-front subsidies to build solar installations and is close to establishing the structure for a national solar "feed-in tariff"–the rebate paid to solar power producers for every kwh sent into the grid.
The inspector general said these added rebates accounted for slightly more than half of all rebates paid to Medicaid on the top 100 drugs.
Higher than expected rebates and increased cost of sales the cause: Rebates were primarily being paid to wholesalers, as the mix shifted from direct sales to retailers towards more indirect sales via wholesalers the level of rebates paid increased.
Among the possibilities under discussion are steps to cancel or sharply reduce tax rebates paid to exporters in sensitive industries like textiles, shoes and furniture.
It claims that rebates paid to hardware manufacturers who buy most or all of their chips from Intel could be designed to squeeze AMD, its main rival, from the market.
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CEO of Professional Science Editing for Scientists @ prosciediting.com