New NCPA Study: Medicaid Pharmacy Modernization Could Save States Billions Without Limiting Access
May 16, 2011
Source: Pharmacy Choice
Texas and other states across the country could save billions in Medicaid without limiting access by transitioning to a more efficient and affordable pharmacy benefit model being used in Medicare and the commercial sector, the National Center for Policy Analysis (NCPA) announced in a new white paper, "Increasing the Cost-Effectiveness of Medicaid Drug Programs."
NCPA, based in Dallas, Texas, is a nonprofit, nonpartisan public policy research organization that develops private, free-market alternatives to government regulation and control that rely on the strength of the competitive, entrepreneurial private sector (see also Medicare and Medicaid).
This new research confirms the findings from a recent study, which found that federal and state governments could save $33 billion over the next decade by managing pharmacy benefits more like Medicare and commercial programs. To help reduce state Medicaid spending, Governor Rick Perry has proposed that the program's prescription drug benefits be operated more like those in the private sector that are more affordable and efficient, which Texas has conservatively estimated would save taxpayers $84 million in the first year alone.
"This latest research confirms that Governor Perry and Texas policymakers are on the right track. Medicaid shouldn't pay more for drug benefits than private insurers and Medicare," said PCMA President and CEO Mark Merritt. "Currently, the program uses fewer generic drugs and pays drugstores more than triple the fees that Medicare or private insurers pay. By modernizing Medicaid drug benefits, Texas will save $3.8 billion over the next decade without cutting benefits to those in need."