The Centers for Medicare and Medicaid Services (CMS) has proposed new rules that will help states and taxpayers save an estimated $17.7 billion over the next five years on prescription drugs bought through Medicaid. The rules are intended to implement a provision of the Affordable Care Act designed to ensure greater transparency in drug pricing so that taxpayers and states are not overpaying for prescription drugs. CMS is currently taking comments on the proposals, and the final rules will go into effect in 2013.
The proposed improvements include aligning reimbursement rates to better reflect the actual price the pharmacy pays for drugs, increasing drug rebates paid to Medicaid patients, and providing rebates for drugs dispensed to individuals enrolled in a Medicaid managed care organization. These simple measures will cut costs, increase transparency, and help Medicaid recipients get more bang for their buck.