HHS Seeks Major Change in Part D, Medicaid Drug Purchasing


By: Kerry Dooley Young

The Trump administration on Thursday unveiled a plan to allow discounts on prescription medicines to flow more directly to patients in the Medicare Part D pharmacy program, while disrupting the flow of rebates that drugmakers now pay to so-called middlemen.

The initial response to the HHS proposal pays too little attention to its potential effects on Medicaid, said Edwin Park, a researcher at the Center for Children and Families at Georgetown University in Washington, DC. Park told Medscape Medical News that most states rely on Medicaid managed care plans and PBMs to negotiate supplemental rebates on behalf of their enrollees. The proposed changes have the potential to increase Medicaid costs by $1.9 billion over a decade.

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