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

id 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.

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SOURCE Pharmaceutical Care Management Association
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