Navigation Links
PCMA: New Analysis Shows Alabama Can Reduce Medicaid Pharmacy Waste by $513 Million
Date:9/13/2013

WASHINGTON, Sept. 13, 2013 /PRNewswire-USNewswire/ -- Alabama could save $513 million by improving the state's Medicaid pharmacy program to encourage greater use of preferred pharmacies and other innovative pharmacy benefit management (PBM) tools, a new analysis by the National Center for Policy Analysis (NCPA) finds.

In June, Governor Robert Bentley created the Medicaid Pharmacy Study Commission to review ways to reduce wasteful spending in Medicaid. The Governor has requested the commission's report to be completed by December 1, 2013.

"Alabama can eliminate $513 million in wasteful spending by operating Medicaid pharmacy more like Fortune 500 companies and Medicare," said Pharmaceutical Care Management Association (PCMA) President and CEO Mark Merritt. "This means better benefits for those in need and lower costs for taxpayers."

A recent report estimates that modernizing management of pharmacy benefits in Alabama's Medicaid program could save $513 million without reducing access or benefits.  The report shows that Alabama and other state Medicaid programs could make more use of the tools Medicare, unions, and employers rely on to curb wasteful pharmacy spending.

The new NCPA analysis shows that Alabama could also save money by:

  • Reducing pharmacy dispensing fees: Alabama paid pharmacies $10.64 to dispense a prescription in 2011, whereas the national average for private Medicare plans is one-fifth as much – about $2. 
  • Increasing use of generic drugs: About three-fourths of drug prescriptions in Alabama's Medicaid program are filled with generics, whereas the national average for managed Medicaid drug benefits is slightly higher – about 80 percent.

The analysis notes policies that states should avoid, such as forcing plans to keep the most expensive drugstores in their networks.  According to NCPA, so-called "Any Willing Pharmacy" laws reduce the bargaining power of health plans to negotiate lower prices and make it more difficult to detect drugstores suspected of fraud.

Policymakers should also avoid giving monopoly power to politically connected drugstores.  According to NCPA, a recent legislative proposal in Alabama "would have restricted Alabama's Medicaid drug management to only one firm - a cooperative owned by member pharmacies.  Placing control over Alabama's Medicaid drug program in the hands of the pharmacies that provide Medicaid enrollees' drugs would not save the state money."

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 216 million Americans.

Follow PCMA on Twitter


'/>"/>
SOURCE Pharmaceutical Care Management Association
Copyright©2012 PR Newswire.
All rights reserved

Related medicine technology :

1. PCMA: Medicare Trustees Report Shows PBMs are Delivering Savings in Part D
2. PCMA: Drugstore Lobbys Bill Would Raise Prescription Drug Costs, Increase Wasteful Spending
3. PCMA: New Report Shows Drugstore Lobby Agenda Raises Rx Costs for Small Businesses, Government Programs
4. PCMA: New Report Shows Anti-PBM Laws Could Raise Health Care Costs for Oklahoma Businesses, Consumers, Government Programs
5. PCMA: The Drugstore Lobby (Again) Looks to Avoid Fraud and Abuse Detection
6. PCMA: 88 U.S. Representatives Urge USPS to Preserve Six Day Delivery of Mail-Service Pharmacy
7. PCMA: Part D Plans and PBMs Continue to Deliver Savings in Medicare
8. PCMA: New Study Finds Generic Medications Saved $1 Trillion Over the Last Decade
9. PharmaPoint: Non-Small Cell Lung Cancer - India Drug Forecast and Market Analysis to 2022
10. PharmaPoint: Dry Eye Syndrome - China Drug Forecast and Market Analysis to 2022
11. New Workflow to Provide Scientists with Tools That Enable Single Cell Analysis for Oncology, Immunology and Stem Cell Research
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/23/2016)... -- Research and Markets has announced the addition ... 2022" report to their offering. ... with kidney failure, it replaces the function of kidneys by ... and thus the treatment helps to keep the patient body,s ... Increasing number of ESRD patients & substantial healthcare ...
(Date:6/23/2016)... Research and Markets has announced the ... 2016 - Forecast to 2022" report to their offering. ... up to date financial data derived from varied research sources ... with potential impact on the market during the next five ... comprises of sub markets, regional and country level analysis. The ...
(Date:6/23/2016)... and INDIANAPOLIS , June ... receiving a Lilly Diabetes Tomorrow,s Leaders Scholarship is any ... scholarship winners, announced today online at www.diabetesscholars.org ... type 1 diabetes stand in the way of academic ... supported the Foundation,s scholarship program since 2012, and continues ...
Breaking Medicine Technology:
(Date:6/25/2016)... , ... June 25, 2016 , ... First Choice ... States, named Dr. Sesan Ogunleye, as the Medical Director of its new Mesquite-Samuell Farm ... Medical Director of our new Mesquite location,” said Dr. James M. Muzzarelli, Executive Medical ...
(Date:6/25/2016)... Oklahoma (PRWEB) , ... June 25, 2016 , ... ... both athletes and non-athletes recover from injury. Recently, he has implemented orthobiologic procedures ... Oklahoma City area —Johnson is one of the first doctors to perform the ...
(Date:6/25/2016)... ... June 25, 2016 , ... Conventional wisdom preaches the benefits ... terms of the latter, setting the bar too high can result in disappointment, perhaps ... slow progress toward their goal. , Research from PsychTests.com reveals that ...
(Date:6/24/2016)... ... ... Those who have experienced traumatic events may suffer from a complex set ... drug or alcohol abuse, as a coping mechanism. To avoid this pain and suffering, ... traumatic event. , Trauma sufferers tend to feel a range of emotions, from depression, ...
(Date:6/24/2016)... ... 2016 , ... Marcy was in a crisis. Her son James, eight, was out of control. ... and physically. , “When something upset him, he couldn’t control his emotions,” remembers Marcy. ... rocks at my other children and say he was going to kill them. If ...
Breaking Medicine News(10 mins):