Pennsylvania Predicts $85 Million in Savings with Medicaid Pharmacy Changes

The Philadelphia Inquirer reported on Oct. 9, that the Department of Human Services (DHS) will implement a single preferred prescription drug list for all companies that manage pharmacy benefits under Medicaid, starting Jan. 1, 2020. DHS estimates the change will save the state $85 million per year, at least in part by allowing the state to take full advantage of federal Medicaid drug rebates. Managed care organizations (MCOs) are not eligible for federal rebates. The companies affected, loosely organized as the Pennsylvania Coalition of Medical Assistance MCOs, assert the proposed change would cost the state $81 million more in the first year and make life harder for doctors. Read More.