Taxpayers are the suckers when it comes to Part D costs…

Insurance companies offeringMedicare-funded prescription drug plans are costing U.S.taxpayers almost $15 billion a year in excess administrativefees and pharmaceutical costs, a congressional study found.  The study released today also found insurers fail to passon $1 billion a year in discounts from drugmakers toparticipants in Medicare, the U.S. health program for theelderly and disabled.“The use of private insurers to deliver Medicare drugcoverage is driving up costs and producing only limited savingson drug prices,” said Representative Henry Waxman, a CaliforniaDemocrat and chairman of the House Oversight and GovernmentReform Committee. The panel’s Democratic staff prepared theanalysis.  The report reviewed administrative expenses, sales costs,profits, and drug rebates of the 12 largest insurers offeringprescription drug plans through Medicare. Combined, thecompanies supply prescription coverage to more than 18 millionelderly Americans, or about 75 percent of the plans’participants.

Source:  Bloomberg, http://www.bloomberg.com/apps/news?pid=20601103&sid=aLucd6NvhBBU&refer=us
Get the report:  http://oversight.house.gov/story.asp?ID=1536