Generic drug cost containment in Medicaid: lessons from five State MAC programs

Health Care Financing Review, Spring, 2004 by Richard G. Abramson, Catherine A. Harrington, Raad Missmar, Susan P. Li, Daniel N. Mendelson

(1) A multi-source brand drug is an off-patent drug that is still marketed under its brand name, despite the availability of generic substitutes. Examples include Zantac[R], Prozac[R], and Ritalin[R].

(2) States may sot certain MAC prices higher than the corresponding FUL prices, as long as total Medicaid expenditures for all drugs with FUL prices does not exceed the total calculated reimbursement amount using FUL prices (Code of Federal Regulations, 2002).

Reprint Requests: Richard G. Abramson, M.D., Hospital of the University of Pennsylvania, 3400 Spruce Street, 1 Founders MRI, Philadelphia, PA 19104. E-mail: rick.abramson@uphs.upenn.edu

REFERENCES

Bridges, S.: Arkansas Medicaid, Personal communication. Little Rock, Arkansas. October 31, 2002.

Centers for Medicare & Medicaid Services: Federal Upper Limits on Drugs. Internet address: http://cms.hhs.gov/medicaid/drugs/drugl0.asp. (Accessed 2004.)

Childs, S.: Washington Medical Assistance Administration, Telephone interview. Olympia, Washington. July 28, 2002.

Code of Federal Regulations: Access to Services. Title 42-Public Health, Volume 3, Part 42 CFR 447.333. Office of the Federal Register, National Archives and Records Administration. U.S. Government Printing Office, Washington, DC. October 1, 2002.

Code of Federal Regulations: Access to Services. Title 42-Public Health, Volume 3, Part 42 CFR 447.332 (a). Office of the Federal Register, National Archives and Records Administration. U.S. Government Printing Office, Washington, DC. October 1, 2002.

Code of Federal Regulations: Access to Services. Title 42-Public Health, Volume 3, Part CFR 447.332 (b). Office of the Federal Register, National Archives and Records Administration. U.S. Government Printing Office, Washington, DC. October 1, 2002.

Commonwealth of Massachusetts, Executive Office of Health and Human Services, Division of Health Care Finance and Policy: Report to the General Court: Reimbursement for Prescribed Drugs, October 3, 2002. Internet address: http://www.ltcpa.org/public/pdf/Pharmacy_Report_Oct3.pdf. (Accessed 2004.)

Gruel, J.: Maryland Medicaid, Telephone interview. Baltimore, Maryland. August 21, 2002. Hawkins, E.: Georgia Medicaid, Telephone interview. Atlanta, Georgia. August 15, 2002.

The Health Strategies Consultancy LLC, and American Management Systems, Inc.: An Overview of Prescription Drug Cost Containment Approaches Used in Medicaid Programs and the Commercial Market. Lessons Learned from State Medicaid and Pharmacy Assistance Programs. CMS Task Order Number. GS-23F-9785H. November 2001.

McNeil, M., and Harper, L.: Texas Medicaid, Telephone interview. Austin, Texas. July 19, 2002.

Merola, T.: New York Medicaid, Telephone interview. Albany, New York. June 2, 2003.

National Pharmaceutical Council: Pharmaceutical Benefits Under State Medical Assistance Programs, 2001. 2002.

Scott-Levin: Top 200 Generic Drugs by Retail Sales in 2001. Drug Topics News Magazine. February 18, 2002.

Wimpee, A., Zuchlewski, T., and Kerber, R.: Washington Medicaid, Telephone interview. Olympia, Washington. July 31, 2002.


 

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