Multi-State Medicaid Rx Pool Approved By HHS; $11 Mil. In Savings Estimated
This article was originally published in The Pink Sheet Daily
Executive Summary
First Health Services will administer the purchasing agreement for Michigan, Vermont, New Hampshire, Alaska and Nevada. The program will cover 900,000 beneficiaries.
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HHS approved the first multi-state Medicaid Rx purchasing agreement April 22. Michigan, Vermont, New Hampshire, Alaska and Nevada will implement the purchasing pool through First Health Services, but each state will maintain separate preferred drug lists. The states expect to obtain larger discounts by pooling their state Medicaid programs. First Health will negotiate supplemental rebates on behalf of the multi-state program. Michigan estimates it will save $8 mil. in 2004 under the arrangement. Vermont reports it will save $1 mil.; Nevada $1.9 mil.; Alaska $1 mil.; and New Hampshire $250,000. The Medicaid purchasing program will cover approximately 900,000 beneficiaries. The Centers for Medicare & Medicaid Services plans to issue guidance to states on forming and joining purchasing pools. "This new approach builds on our efforts to help states use the best private-sector purchasing tools to lower costs," CMS Administrator Mark McClellan said. Michigan and Vermont began the Medicaid purchasing pool in 2003, which is based on the Michigan Pharmaceutical Best Practices Initiative. The Michigan program requires manufacturers to match the price of "best-in-class" agents or be subject to prior authorization. A D.C. federal appeals court upheld the program April 2 (1 (Also see "Michigan Rx Rebate Requirement For Non-Medicaid Programs Upheld By Appeals Court" - Pink Sheet, 2 Apr, 2004.)). - Tericke Blanchard |