Medicaid Prescription Drug Spending: Approaches to Cost Containment

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October 2016

This presentation offers an introduction to discussion of Medicaid payment for prescription drugs—including average manufacturer price, best price, the inflation rebate, and state supplemental rebates—that assist in constraining Medicaid prescription drug spending. The presentation compares Medicaid drug cost containment tools to private sector tools and suggests potential options the Commission might explore to enhance the ability of Medicaid to manage spending on prescription drugs.

Publication Type: Presentations

From: October 2016 MACPAC Public Meeting

Tags: fee for service, managed care, Medicaid and other payers, payment, prescription drugs, spending, spending growth, value-based purchasing