tci Medicare Compliance & Reimbursement - 2004 Issue 16

MEDICAID: Michigan Preferred Rx List Wins Appellate Blessing

State can leverage its Medicaid buying power for enrollees in state programs.A federal appellate court has okayed a Michigan program that leverages the state's Medicaid population to achieve lower prescription-drug prices for Medicaid recipients and enrollees in other state programs. The opinion could have widespread significance. Twenty-five states besides Michigan have Medicaid preferred drug lists, and 10 other states have authorized such lists but not yet established them, according to the Associated Press. The U.S. Court of Appeals for the D.C. Circuit ruled April 2 that the federal government did not act arbitrarily or...

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