Healthcare Business News

CMS seeks savings through changes in Medicaid drug payments

By Gregg Blesch
Posted: January 29, 2012 - 3:00 pm ET

The CMS said the federal and state governments would save about $17.7 billion over five years with adjustments to the way Medicaid pays for prescription drugs.

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A proposed rule, which implements provisions of the Patient Protection and Affordable Care Act, seeks to make Medicaid reimbursement for medications more transparent and more closely aligned with what pharmacies pay for the drugs, according to a CMS news release.

The regulations also would increase the rebates paid by drugmakers that participate in Medicaid and would establish rebates for drugs provided to enrollees in Medicaid managed-care plans, which are now exempt.

The proposed rule is scheduled to be published in the Federal Register on Feb. 2, and comments will be accepted until April 2.

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