WASHINGTON, Jan. 31, 2011 /PRNewswire-USNewswire/ — Ohio’s
Medicaid program could cost taxpayers an additional $1.6 billion
next year, a 49 percent jump in the state’s share of costs for the
health care program covering more than 2 million poor and disabled
Ohioans, according to new information released by the Governor’s
Office of Health Transformation. This new information comes
on the heels of a recent
report issued by the Pharmaceutical Care Management
Association (PCMA) that found the state of Ohio’s Medicaid
program could save $135 million over the next decade by managing
pharmacy benefits more like Medicare and commercial-sector employer
plans.
“The easiest way for the state of Ohio to reduce costs in
Medicaid without cutting benefits is to stop overpaying pharmacies
and start using cutting edge marketplace tools to negotiate lower
rates and increase the use of generics,” said PCMA President and
CEO Mark Merritt. “By operating more like Medicare and
commercial market plans, the Ohio Medicaid program could reduce
pharmacy costs, increase the use of generics, and save $135 million
over ten years without cutting benefits.”
Recent
polling finds that voters want to reduce Medicaid spending by
more efficient pharmacy management rather than cutting benefits for
patients or payments to doctors and hospitals. Voters also
want Medicaid to stop paying higher pharmacy costs than other
programs while also using fewer generics.
Most states use a fee-for-service approach in which public
officials arbitrarily determine how much pharmacies are paid.
As a result, Medicaid often pays pharmacies higher dispensing
fees and ingredient cost reimbursements. On the other hand,
Medicare and commercial plans allow pharmacy payments to be
privately negotiated between plans and phar
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