Next month, a federal appeals court will consider whether state Medicaid programs can barter for removal of prior-authorization restrictions in exchange for larger rebates - Brief Article

Drug Cost Management Report, Nov 21, 2003

* Next month, a federal appeals court will consider whether state Medicaid programs can barter for removal of prior-authorization restrictions in exchange for larger rebates. Pharmaceutical manufacturers have asked the U.S. Court of Appeals for the District of Columbia to consider whether this practice by states violates a federal ban on cost-based Medicaid formularies.

The court is expected to hear the case Dec. 12. The Pharmaceutical Research and Manufacturers Association (PhRMA) sued the HHS Secretary when Michigan and other states placed some drugs on their PA lists and told drug makers they would remove the PA restriction in exchange for higher rebates. Contact PhRMA at (202) 835-3400.