New York flags 42 drugs for supplemental Medicaid rebates
The New York State Department of Health identified 42 drugs from 25 manufacturers for possible referral to the state's Drug Utilization Review (DUR) board. The DoH will immediately begin negotiating with manufacturers supplemental rebates for prescriptions covered under Medicaid, which the manufacturers would have to concede in addition to the automatic discount to the drug's list price afforded to state Medicaid programs under federal law.
New York law established an annual Medicaid drug spending growth target equal to medical inflation plus 4% and minus a pharmacy savings target of $85 million. If the New York DoH projects spending to exceed the target, it can recommend imposing supplemental manufacturer rebates on certain high cost drugs. The state's Medicaid Global Spending Cap is $19.5 billion for FY18...