How the Federal Government Can Help States Address Rising Prescription Drug Costs

State Medicaid programs, which face rapidly rising drug costs, have few bargaining chips to use when negotiating lower drug costs, due in part to decades-old federal rules that limit their bargaining power. NASHP, with support of The Commonwealth Fund, recently sat down with state and federal policymakers to identify policy and rule changes that could enhance states’ purchasing power. Their recommendations include modernizing the current rebate program, testing new approaches to price negotiation and formulary management, transparent audits to ensure fair pricing for states, and more oversight of pharmacy benefit manager operations. Read the report.

NASHP Executive Director Trish Riley recently wrote about the recommendations in a blog published in the journal Health Policy. The blog originally appeared in Health Affairs on Feb. 16, 2018.