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:9/22/2017)... Sept. 22, 2017  As the latest Obamacare repeal ... Bill Cassidy (R-LA) and Lindsey Graham ... the medical device industry is in an odd place. ... the 2.3% excise tax on medical device sales passed ... want covered patients, increased visits and hospital customers with ...
(Date:9/18/2017)... KALAMAZOO, Mich. , Sept. 18, 2017 /PRNewswire/ ... and OptiMed Specialty Pharmacy of Kalamazoo, Mich. ... a strategic hub service that expedites and streamlines patient ... spirometer, Spiro PD 2.0, and wellness management services.  ... a medical device used to measure lung function for ...
(Date:9/12/2017)... reviews on the independent review site Consumer Affairs have ... hearing aids, ranking it higher than Miracle Ear ™, Beltone™, ... ... Aids ... that provides high performance, state-of-the-art, German-engineered hearing aids directly to consumers ...
Breaking Medicine Technology:
(Date:10/13/2017)... New York, NY (PRWEB) , ... October 13, 2017 , ... ... most influential people in business to advocate for action towards gender equality at their ... 18,000 views from around the globe, and reached a social audience of over 3 ...
(Date:10/13/2017)... , ... October 13, 2017 , ... ... be giving viewers the lowdown on sciatica in a new episode of "Success ... focuses on current events and innovation and investigates each subject in-depth with passion ...
(Date:10/13/2017)... ... October 13, 2017 , ... “America On The Brink”: the Christian history ... The Brink” is the creation of published author, William Nowers. Captain Nowers and ... WWII veteran, he spent thirty years in the Navy. Following his career as ...
(Date:10/12/2017)... (PRWEB) , ... October 12, 2017 , ... Planet Fitness, ... the U.S., announced today its plans to open a flagship location in Covington, LA ... the former Rooms To Go store next to Office Depot in the Holiday Square ...
(Date:10/12/2017)... ... ... The American College of Medical Informatics (ACMI) will present the 2017 Morris F. ... AMIA’s Annual Symposium in Washington, D.C. AMIA’s Annual Symposium is taking place ... the field of medical informatics, this prestigious award is presented to an individual whose ...
Breaking Medicine News(10 mins):