How the Federal Government Can Partner with States to Control Drug Costs
<p>The Trump administration has indicated it will allow up to five states to test new ways of managing their Medicaid prescription drug programs, and recent proposals by Massachusetts and Arizona to use some of the cost-control tools available in the commercial market seem tailor-made for this plan. But there are many more ways that Medicaid programs could tackle drug costs than are outlined in the administration’s 28-page report, says Trish Riley in a new <em>Health Affairs</em> blog post.</p><p>Riley, the executive director of the National Academy for State Health Policy (NASHP), describes a recent Commonwealth Fund–sponsored forum where state and federal officials came together to brainstorm ideas for working together more effectively. “States provide the federal government with an opportunity to test approaches that can inform federal policy and begin to address the great challenge of lowering the prices of needed medication,” Riley says. For example, she notes that states would like to test ways to use their formularies under Medicaid to strengthen their negotiating position with drug manufacturers.</p>
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