Feds To Implement New Medicaid FFS Pharmaceutical Reimbursement Methodology In 2017

A new federal Medicaid rule on how states must calculate reimbursement for fee-for-service (FFS) medications went into effect on April 1, 2016 and goes live in 2017; the rule is intended to cut Medicaid spending by $2.7 billion over five years. The rule establishes a long-term methodology for implementing the Medicaid drug rebate and reimbursement programs. New definitions in the rule are intended to ensure that Medicaid rebates paid to states accurately account for market prices. The rule includes incentives to pharmacies for using generic drugs by ensuring proper reimbursements for their cost.

The Centers for . . .