Navigation Links
New NCPA Study: Medicaid Pharmacy Modernization Could Save States Billions Without Limiting Access
Date:5/3/2011

WASHINGTON, May 3, 2011 /PRNewswire-USNewswire/ -- Texas and other states across the country could save billions in Medicaid without limiting access by transitioning to a more efficient and affordable pharmacy benefit model being used in Medicare and the commercial sector, the National Center for Policy Analysis (NCPA) announced in a new white paper, "Increasing the Cost-Effectiveness of Medicaid Drug Programs."

NCPA, based in Dallas, Texas, is a nonprofit, nonpartisan public policy research organization that develops private, free-market alternatives to government regulation and control that rely on the strength of the competitive, entrepreneurial private sector.

This new research confirms the findings from a recent study, which found that federal and state governments could save $33 billion over the next decade by managing pharmacy benefits more like Medicare and commercial programs.  To help reduce state Medicaid spending, Governor Rick Perry (R) has proposed that the program's prescription drug benefits be operated more like those in the private sector that are more affordable and efficient, which Texas has conservatively estimated would save taxpayers $84 million in the first year alone.

"This latest research confirms that Governor Perry and Texas policymakers are on the right track.  Medicaid shouldn't pay more for drug benefits than private insurers and Medicare," said PCMA President and CEO Mark Merritt. "Currently, the program uses fewer generic drugs and pays drugstores more than triple the fees that Medicare or private insurers pay.  By modernizing Medicaid drug benefits, Texas will save $3.8 billion over the next decade without cutting benefits to those in need."  

NCPA outlined a number of strategies to better manage and lower Medicaid pharmacy costs, including:

  • Increasing utilization of generic drugs;
  • Negotiating competitive dispensing fees;
  • Improving drug utilization controls; and
  • Negotiating discounts and reimbursements with drugmakers similar to commercial sector.

Recent polling finds voters would rather modernize Medicaid pharmacy than cut benefits for patients or payments to doctors and hospitals. In addition to Governor Perry, Governors Chris Christie (R-NJ) and Andrew Cuomo (D-NY) have already proposed such changes to reduce prescription drug spending in their own states.

Many state Medicaid programs pay too much for prescription drugs because they use an archaic, fee-for-service approach in which state officials set payment rates and are therefore constantly lobbied to inflate them by special interests like pharmacists.  To avoid this trap, most non-Medicaid drug benefits programs – like those offered by Medicare, employers and unions – rely upon independent, third party pharmacy benefit experts to negotiate competitive rates with pharmacies. These programs also reduce costs by employing cutting-edge, market-proven strategies to increase the use of generics.

PCMA represents the nation's pharmacy benefit managers (PBMs), which improve affordability and

quality of care through the use of electronic prescribing (e-prescribing), generic alternatives, mail-service pharmacies, and other innovative tools for 210-plus million Americans.

Follow PCMA on Twitter


'/>"/>
SOURCE Pharmaceutical Care Management Association
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. New Study: Overuse of Combination Drug Therapy in Patients with Mild Asthma Leads to Increased Costs
2. New Study: Physician Adoption of Live Video Detailing Has Doubled Since 2008, But Will Likely Plateau Until 2012 as Pharma Optimizes Targeting
3. Medco Study: Despite FDA Warnings, Nearly One-Third of Asthma Patients Still Treated with Long-Acting Beta Agonists Without Controller Medications, Increasing Their Risk for Complications and Hospitalizations
4. New Study: Antidepressants Commonly Prescribed with Tamoxifen Put Women at Much Higher Risk for Recurrent Breast Cancer
5. New Study: Pine Bark Significantly Reduces Menstrual Pain
6. New Study: Pine Bark Extract Boosts Nitric Oxide (NO) Production
7. Merz Pharmaceuticals Announces New Centers for Medicare and Medicaid Billing Q-Code for Xeomin® (incobotulinumtoxinA)
8. Budget Solution? Modernizing Medicaid Pharmacy Could Save Florida $473 Million
9. The Centers For Medicare and Medicaid Services Issues Advance Guidance to Part D Plan Sponsors Allowing the Use of Generic Sampling as Medicare Part D Drug Utilization Management Tool.
10. Texas Health and Human Services Commission: Modernize Medicaid Pharmacy to Save State $82 Million
11. NACDS, NCPA Provide Insights to Governors and State Medicaid Directors Confronting Medicaid Budgetary Challenges
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:9/22/2017)... , Sept. 22, 2017 AVACEN Medical (AVACEN) ... is now successfully helping those with the widespread pain ... Fibromyalgia diagnosed Amanda in Essex, England ... washing my hair, experiencing no sleep at all, tremendous ... spasm… I cannot recommend [the AVACEN 100] enough, how ...
(Date:9/18/2017)... , Pa. and KALAMAZOO, Mich. , ... Allentown, Penn. , and OptiMed Specialty Pharmacy of ... business partnership to offer a strategic hub service that ... Healthcare,s highly sought-after personal spirometer, Spiro PD 2.0, and ... A spirometer is a medical device used to ...
(Date:9/12/2017)... and NEW YORK , Sept. 12, 2017   ... for global supply chains, has published the first annual edition of its ... of more than 20,400 companies evaluated by EcoVadis, based on Scorecard Ratings ... 2016. ... CSR Risk & Performance Index ...
Breaking Medicine Technology:
(Date:10/13/2017)... ... ... The American Board of Family Medicine's (ABFM) Board of Directors has selected Warren ... James C. Puffer upon his retirement. Dr. Newton will serve in the position of ... end of 2018. Upon assuming the role of President and CEO on January 1, ...
(Date:10/13/2017)... ... ... Lori R. Somekh, founder of the Law Office of Somekh & Associates ... special needs planning attorneys. “Membership in ElderCounsel helps our office remain up to date ... elder law attorneys nationwide,” said Somekh. , ElderCounsel was founded by ...
(Date:10/13/2017)... ... ... Ellevate Network, the leading network for professional women, brought together some of ... their inaugural Summit in New York City in June. The event was livestreamed with ... 3 million. To watch the Mobilize Women video, click here . , ...
(Date:10/13/2017)... Fairfax, VA (PRWEB) , ... October 13, 2017 ... ... provider of DevOps and Agile Software Development, has been awarded a contract by ... (EATS) Blanket Purchase Agreement (BPA) aims to accelerate the enterprise use of Agile ...
(Date:10/12/2017)... ... October 12, 2017 , ... CitiDent ... sleep apnea using cutting-edge Oventus O2Vent technology. As many as 18 million ... by frequent cessation in breathing. Oral appliances can offer significant relief to about ...
Breaking Medicine News(10 mins):