In the absence of new federal policies to tame break-the-bank drug prices, Massachusetts’state Medicaid program hopes to road-test an idea both radical andmarket-driven. It wants the power to negotiatediscounts for the drugs it purchases and to exclude drugs withlimited treatment value.
“This is a serious demonstration proposal,” said Sara Rosenbaum,a health policy expert and professor at George WashingtonUniversity. “They’re not simply using [this idea] as an excuse tocut Medicaid. They’re trying to take a step toward efficiency.”
If the Department of Health and Human Services approves the BayState’s plan, others will likely take similar action. According tothe most recent federal data, Medicaid spending on prescriptiondrugs increased about 25 percent in 2014 and nearly 14 percent in2015.
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