Navigation Links
Medicaid Managed Care Drug Rebates Saved States, Feds $1.6 Billion in First Year
Date:9/12/2012

WASHINGTON, Sept. 12, 2012 /PRNewswire-USNewswire/ -- The Department of Health and Human Services Office of Inspector General (OIG) on Monday released a new report "States' Collection of Rebates for Drugs Paid through Medicaid Managed Care Organizations," which showed that 12 of the 22 States using a carve-in approach invoiced manufacturers and collected $1.6 billion in rebates for utilization in the second quarter of 2010 through the second quarter of 2011. The OIG surveyed states on the data collected from managed care organizations on pharmacy utilization and rebate submission to manufacturers during this period, the first five quarters for which statutory rebates on managed care pharmacy were available to states.

"One of the hallmarks of Medicaid managed care is more efficient delivery of care, including lifesaving pharmaceuticals," said Thomas Johnson, president and CEO of Medicaid Health Plans of America.  "The Medicaid managed care pharmacy carve-in model, in which prescription drugs are included in health plans' payments, encourages the use of chain drugstores and mail-order because they are more cost-efficient.  Medicaid health plans have higher generic medication dispensing rates than traditional fee-for-service Medicaid for the same reason.  Medicaid health plans are changing the way patients receive those medicines so that limited resources are spent wisely. The savings documented in this report are evidence that the model is working and working well," continued Johnson.

The pharmacy carve-in also increases the efficiency of healthcare delivery by allowing plans to coordinate pharmacy benefits with medical benefits, ensuring that patients get the medicines that are right for them. Medicaid health plans ensure that pharmacy benefits are optimally managed, which includes monitoring for harmful drug interactions, improving patient adherence and compliance, and increasing generic substitution. The $1.6 billion documented in the OIG's Report reflects only the revenue states collected from pharmaceutical companies in statutory rebates; states realize even more savings from better care coordination.

The pharmacy carve-in model is made possible by a provision in the Affordable Care Act that allows states to capture rebates on pharmacy benefits provided through managed care, which was previously limited to only traditional fee-for-service Medicaid. This "Drug Rebate Equalization" was a top legislative priority for MHPA for many years.  The OIG report found that the rebate expansion has prompted five states – Illinois, Ohio, New York, Texas, and Utah – that previously used the carve-out approach to change to a carve-in approach, showing the importance and far-reaching effect of this legislation.

"Including a treatment option as important as prescription drugs in Medicaid managed care contributes to the strength of the coordinated care model," Johnson noted. "This integrated care benefits all patients, especially those with multiple chronic conditions like the population dually eligible for Medicare and Medicaid. Medicaid health plans' proven care coordination strategies like the pharmacy carve-in can go a long way in terms of keeping costs down as is shown in this report. But, more important, models like this move us closer to improving outcomes for our nation's most needy."

About MHPA
Medicaid Health Plans of America is the leading national trade association solely focused on representing the universe of Medicaid health plans. MHPA provides advocacy, research and organized forums that support the development of policy solutions to enhance the delivery of quality health care to Americans in need.

Media Contact:
Joe Reblando
202-857-5722
jreblando@mhpa.org


'/>"/>
SOURCE Medicaid Health Plans of America
Copyright©2012 PR Newswire.
All rights reserved

Related medicine technology :

1. PhRMA Statement on Proposed Changes to Medicaid in Louisiana
2. Center for Medicare & Medicaid Innovation Awards $19 Million Grant to Develop Oncology Medical Home Model
3. ApolloMed ACO Selected To Participate In A Transformative New Initiative Sponsored by the Centers for Medicare and Medicaid Services
4. Texas Medicaid Managed-Care Problems Gaining National Attention
5. Centene Corporation Selected for Ohio Medicaid Contract
6. Selfhelp Community Services and FEGS Health & Human Services Launch New Care Management Company: SinglePoint Care Network to Coordinate Care for Seniors & Others With Chronic Medical Conditions in Managed Long Term Care Market
7. Academy of Managed Care Pharmacy (AMCP) Helps Explain Health Care Laws Contraception Coverage Provision
8. New Managed Markets E-Learning Courses From Pharmaceutical Institute Offer a Complete Public Payer Perspective
9. Foundation for Managed Care Pharmacy (FMCP) Presents Awards for 2012 National P&T Competition and Best Posters
10. Academy of Managed Care Pharmacy (AMCP) Installs 2012-2013 Board of Directors
11. PCMA: New Study Finds Generic Medications Saved $1 Trillion Over the Last Decade
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:1/24/2017)... GERMANTOWN, Md. , and GAITHERSBURG, Md. ... XON ), a leader in the engineering and ... health of the planet, today announced that it has entered ... (NASDAQ: GNVC ), a clinical-stage company and pioneer ... Intrexon intends to integrate and expand upon GenVec,s expertise ...
(Date:1/24/2017)... , January 24, 2017 www.Financialbuzz.com ... growing industries in the United States ... in 2016. In addition, Proposition 64, the California Cannabis Legalization ... 42.87% against on November 8, 2016. This outcome means that ... use and to grow a certain amount of cannabis for ...
(Date:1/24/2017)...   QR Pharma , Inc., a privately ... for the treatment of Alzheimer,s, Parkinson,s and other ... world-class key opinion leaders to its Scientific Advisory ... previous roster of impressive advisors in order to ... development of the breakthrough mechanism of action of ...
Breaking Medicine Technology:
(Date:1/24/2017)... ... January 24, 2017 , ... OMI Industries, ... officially formed a distribution partnership with Byers Scientific & Manufacturing , a ... , Through the agreement, OMI Industries formulated a special version of Ecosorb® for ...
(Date:1/24/2017)... ... January 24, 2017 , ... Center for Hispanic Leadership (CHL) ... named Hector M. Chavez, Manager, Employee & Labor Relations at City of Hope ... Hispanic Leader of the Month. City of Hope is committed to stay out in ...
(Date:1/24/2017)... ... January 24, 2017 , ... The University of Iowa, ... great care to design a program that provides teachers with the specific skills and ... online teaching certificate is ideal for post-baccalaureate students and HigherEducation.com is working to ensure ...
(Date:1/24/2017)... ... January 24, 2017 , ... The NewKILO JRP, a three-year project of the ... the European Union (EU), was completed in May 2015. The future definition will require ... used in air, which presents some challenges to establishing traceability to the mass scale. ...
(Date:1/24/2017)... ... January 24, 2017 , ... Today, Taza Agua, Costa ... bottles, designed specifically to optimize the drinking experience for K-Cup coffee, tea and ... introducing the world’s first untouched bottled water purposed exclusively for creating a superior ...
Breaking Medicine News(10 mins):